The acquisition is being carried out through a special purpose vehicle (SPV) and two group firms Tech Mahindra and Mahindra & Mahindra (M&M) will own 60 percent and 40 percent, respectively, in the Turin-based firm.

The company said the cost of acquiring 76.06 percent in Pininfarina by the SPV will be Euro 25.3 million, which would be funded by Tech Mahindra and M&M in the ratio of 60:40.

This will be followed by an open offer for the remaining 23.94 percent stake of Pininfarina at the same purchase price paid for the shares held by Pincar, it added.

In March Pininfarina, which is renowned for its design of the Ferrari and Alfa Romeo, had said Mahindra expressed interest in acquiring the company but no agreement was signed.

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