Kinetic to invest Rs 30 crore in Mahindra Two Wheelers Pvt Ltd
Pune-based two-wheeler manufacturer Kinetic Motor has announced that it will invest up to Rs 30 crore in Mahindra Two Wheelers Pvt. Ltd., to buy 2.95 crore equity shares of the latter. Kinetic took this decision during its extraordinary general meeting held yesterday.
Kinetic's EGM also approved an increase in its authorized share capital from the current Rs 88.56 crore to Rs 93.56 crore, by creation of new five lakh redeemable cumulative preference shares of Rs 100 each.
[Via: Indiaautomotive]
KMCL to sub-licence ‘Kinetic’ brand to Mahindra
The Pune-based Kinetic Motor Company Ltd. (KMCL) has announced it will extend its brand licence agreement with Kinetic Engineering Ltd. (KEL) for the use of 'Kinetic' brand, and will also sub-licence the brand to Mahindra Two Wheelers Pvt. Ltd. The pact would be extended for another 25 years with effect from 1st April 2009, and the sub-licensing would also be for 25-year-period, Kinetic Motor said in a filing to the Bombay Stock Exchange.
'For renewal of the said Brand Licence agreement, KMCL has agreed for a consideration of Rs 7.75 crore to be paid to KEL,' the filing added. While Rs 2.75 crore has to be paid on or before 31st March 2010, the rest would by way of issuing five lakh redeemable cumulative preference shares of Rs 100 each, fully paid up, in the share capital of the company.
Further, Kinetic Motor would invest up to Rs 29.5 crore in equity shares of Mahindra Two Wheelers Pvt. Ltd., subject to shareholders approval and other necessary approvals. These decisions were taken at Kinetic Motor's board meeting yesterday.
Mahindra to acquire stake in Kinetic Motor
Mahindra & Mahindra is planning to acquire a 76% stake in two wheeler maker Kinetic Motor Company for an estimated 120 crore rupees, for which it has signed up a term sheet and was doing due dilligence, sources have reported. The deal could frutify in the next two months. Kinetic Motor's Managing Director Sulajja Firodia declined to comment on it, saying this is completely speculative.
Kinetic Motor company is seeking fund infusions to the tune of Rs. 125 Crores and is looking at both financial institutions and staretegic investors, which would help the company to return to profit.
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