India’s tractor giant Mahindra and Mahindra group on Friday said it will exit from its China joint venture for tractor business, Mahindra Yueda Yancheng Tractor Company, by selling entire stake for RMB 82 million (nearly Rs80 crore). The Indian conglomerate has plans to independently operate in China.
Mahindra and Mahindra holds 51% stake in the Chinese JV through its wholly owned subsidiary Mahindra Overseas Investment Company (Mauritius) Limited.
“Mahindra Overseas Investment Company (Mauritius) Limited (MOICML)… has agreed to sell its entire shareholding of 51% in Mahindra Yueda Yancheng Tractor Company Ltd (MYYTCL), China.
Upon receipt of requisite regulatory approvals and completion of other formalities, MYYTCL will cease to be a subsidiary of MOICML…,” Mahindra and Mahindra said in a regulatory filing.
The company is selling entire stake to Jiangsu Yueda Investment company (2% stake), Jiangsu Yueda Group (39%) and Yan Bingde (10%) for an aggregate amount of 82 million RMB or about Rs80 crore.
The equity transfer for the deal has been executed today and the deal is expected to be closed by end of this month.
“This development would also mark the beginning of a new journey for Mahindra in China, as the company reviews its plans to explore the wider opportunities which would be available to Mahindra with its recent global initiatives in the farm machinery space,” Mahindra and Mahindra said in a statement.