Mahindra & Mahindra is set to acquire a complete 100% stake in Meru Travel through a share purchase agreement with other shareholders.
"The company has entered into a Share Purchase Agreement ("SPA"), to acquire shares from certain existing shareholders of Meru viz. True North Trusteeship Pvt Ltd (nominee of True North Fund III-A), True North Trusteeship Pvt. Td. (nominee of True North Fund IV), Nilesh Sangoi and Bennett Coleman & Co. Ltd., holding 44.14% of the paid up Equity Share Capital of Meru in the aggregate, for an amount not exceeding Rs. 76.03 crores. The said SPA also envisages that 30,000 Optionally Redeemable Optionally Convertible Non-Cumulative Preference Shares ("OCRPS") held by an existing shareholder, be redeemed at the face value of Rs 10 each, at an aggregate price of Rs 3,00,000 out of the proceeds of a fresh issue on Rights basis," the company has stated in a release.
The company has also entered into an agreement with Neeraj Gupta & Farhat Gupta to acquire shares held by them in Meru aggregating 12.66% of its paid up Equity share capital, for an amount not exceeding Rs. 21.63 crores which will be followed with the execution of a Share Purchase Agreement.
Both the above two agreements will results in 100% acquisition by M&M of Meru Travel.