Mahindra & Mahindra (M&M) is buying a 55 percent stake in ride-hailing firm Meru Travel Solutions for a cash consideration of up to Rs 201.5 crore.
The company signed a share subscription and shareholder agreement on Saturday for subscribing up to 55 percent of equity share capital of Meru in tranches, M&M said in an exchange filing.
As per the agreement, after the investment of the first tranche in Meru, M&M will have the right to appoint a majority of the directors on the board of Meru and will control its composition, it added.
Under the deal structure, M&M will make a primary investment of an amount not exceeding Rs 103.5 crore for a stake of up to 55 percent in Meru in tranches.
The agreement also envisages M&M to have the right of call option to acquire shares from certain existing investors of Meru and these existing investors of Meru would have put option to sell shares for an amount not exceeding Rs 98 crore, it added.
Earlier this year, South Korea’s Hyundai and Kia together had announced that they were investing $300 million (about Rs 2,100 crore) in India’s ride-hailing major Ola.
(With inputs from agencies)
First Published: IST