In December 2020, the company increased its stake in combined harvester maker Sampo Rosenlew Oy to 79.13% with the acquisition of additional 1,050 shares for INR 31.15 crore.
M&M executed an option exercise share purchase agreement to acquire 1,317 equity shares of Sampo Rosenlew Oy, pursuant to the exercise of a call option by it on the other shareholder of Sampo. Subsequently, the shareholding and consequent voting rights of M&M in Sampo would increase from 79.13% to 100% of the equity share capital of Sampo and it would become a wholly owned subsidiary of the company.
The consideration will be paid in cash and the 1,317 equity shares of Sampo are being acquired at a price of euro 3,333 per share aggregating euro 43,89,561 (INR 35.57 crore), the filing said.
Sampo is known for its mid-sized combine harvesters in markets, including Europe and North Africa. It is also a joint venture partner of M&M for combined harvesters in Algeria.
Sampo will jointly focus on the combined harvesters and specialty harvester business in Asia, Africa, Eurasian Economic Union countries and Latin America.
Mahindra’s scale in tractors and Sampo’s expertise in combine harvesters allow both companies to offer a broader product portfolio to address the needs of farmers in various countries.
Sampo clocked a turnover of EUR 52 million in the fiscal ended March 31, 2022.