ELCR News -- Mahindra & Mahindra to acquire 55.2% equity stake in REVA Electric Car Deal In Brief.
Wednesday, May 26, 2010 2:09 PM
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News for 'ELCR' - (Mahindra & Mahindra to acquire 55.2% equity stake in REVA Electric Car Deal In Brief)
May 26, 2010 (Datamonitor Financial Deals Tracker via COMTEX) -- Mahindra &
Mahindra Limited (M&M), a manufacturer of agricultural tractors and light
commercial vehicles, has signed an agreement to acquire a 55.2% equity stake in
REVA Electric Car, Co., Ltd. (REVA), a manufacturer of electric vehicles, from
its promoters Maini Group and AEV LLC.
Under the terms of the agreement, M&M will acquire a 55.2% equity stake in REVA
from the promoters of REVA and fresh equity investment of over INR450 million
($9.46 million) in REVA. Following the acquisition, REVA will be renamed as
Mahindra REVA Electric Car, Co., Ltd.
REVA was formed in 1994 as a joint venture between India-based Maini Group and
US-based AEV LLC. REVA is backed by venture funds Global Environment Fund (GEF)
and Draper Fisher Jurvetson (DFJ).
Rumour (April 3,2010):
According to The Economic Times, Mahindra & Mahindra is planning to acquire a
majority stake in REVA Electric Car Company. Both the companies are based in
India.
Reportedly, M&M is in talks with REVA's founder, the Maini family, and two
US-based investment firms Global Environment Fund and Draper Fisher Jurvetson,
to acquire the majority stake in REVA.
Deal Type Acquisition
Sub-Category Majority Acquisition
Deal Status Announced: 2010-05-26
Deal Participants
Target (Company) REVA Electric Car Company
Acquirer (Company) Mahindra & Mahindra Limited
Vendor 1 (Company) Maini Group
Vendor 2 (Company) AEV LLC
Deal Rationale
The acquisition will allow Mahindra & Mahindra to enter into the electric car
segment and also benefit from REVA's EV technology for its own products.
% Acquisition 55.2%
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