Mahindra & Mahindra (M&M) on Tuesday (17 March 2020) said it signed an agreement for subscribing around 5% of the share capital of Eurl LD Azouaou, Algeria.
Eurl LD Azouaou (LDA) is a company organized under Algerian Law. LDA is engaged in the business of tractor assembly and distribution and has presence in Algeria. The turnover of LDA for the 12 months period ending on 31 December 2019 is Algerian Dinar (DZD) 282.16 million (approximately $2.4 million and Rs 17.4 crore).M&M said this investment would enable the company to re-enter the Algerian agricultural machinery market. The acquisition may complete by the end of May 2020. The acquisition will cost $1,50,000 (approximately Rs 1.1 crore) at a price per share of DZD 3,092,931.81 (approximately $25,774 per share and Rs 0.19 crore per share). The announcement was made after market hours yesterday, 17 March 2020.
Shares of M&M declined 4.94% to Rs 356. The stock tanked 17% in the past three trading sessions from its recent closing high of Rs 428.95 on Friday, 13 March 2020. The stock hit 52-week low at Rs 355.55 during intraday trade.
On a consolidated basis, the company's net profit slumped 85.3% to 201.78 crore on a 4.5% fall in net sales to Rs 25,019.86 crore in Q3 December 2019 over Q3 December 2018.
M&M's segments include automotive, farm equipment, financial services, real estate, hospitality and others. Automotive segment comprises of sale of automobiles, spares, mobility solutions and construction equipment. Its farm equipment segment comprises of sale of tractors, implements and spares.
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