Utility vehicles major Mahindra & Mahindra Ltd. on Thursday said it has completed the acquisition of 36.63 percent stake in Meru Travel Solutions in the first tranche as part of its Rs 201.5-crore deal to acquire 55 percent shareholding in the radio taxi operator.
In September M&M had announced signing of a share subscription and shareholder agreement for subscribing up to 55 percent of equity share capital of Meru Travel Solutions Pvt. Ltd. in tranches.
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The company has today acquired 36.63 percent of the equity share capital of Meru in the first tranche of investment, and also the right to appoint majority of the directors on the board of Meru.M&M statement
M&M said it "has invested an amount of Rs 44.71 crore (in cash consideration) for the acquisition of 36.63 percent of the equity share capital of Meru". Consequently, Meru has become a subsidiary of the company with effect from Dec. 5, 2019.
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Also subsidiary companies of Meru -- Meru Mobility Tech Pvt. Ltd., V-Link Automotive Services Pvt. Ltd., V-Link Fleet Solutions Pvt. Ltd. -- have in turn become subsidiaries of M&M, it added.
For the year ended March 31, 2019, Meru had consolidated revenue of Rs 156.6 crore, while Meru Mobility Tech had a standalone revenue of 114.6 crore. V-Link Automotive's standalone revenue was Rs 3.3 crore and V-Link Fleet's was Rs 46.6 crore.
Meru, which was incorporated in December 2006, had clocked consolidated revenue of Rs 156.6 crore in 2018-19, Rs 189.9 crore in 2017-18 and Rs 277.2 crore in 2016-17.
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