Mumbai: Mahindra and Mahindra on Saturday said it will buy a 13.5 percent stake in component manufacturer CIE Automotive for 96.24 million euros (Rs.738.45 crore).

"A committee of directors of the company on June 15, 2013 has approved entering into a share purchase agreement with Participaciones Internacionales Autometal, CIE Automotive and Autometal S.A.," the company said in a regulatory filing to the Bombay Stock Exchange (BSE).

Investment of Euro 96.24 million is to be made by the company through its subsidiary(ies) for a stake of 13.5 percent in CIE Automotive S.A. at a price of €6.00 per share.

The company which is headquartered in Bilbao, Spain, focuses on three strategic business areas of automotive components, biofuels and providing technological solutions and services. The company is listed on the Madrid and Bilbao stock exchanges and has presence in 15 countries.

The company had reported a slowdown in its turnover for the first quarter of 2013, the consolidated turnover stood at 418 million euros (down 2.6 percent).

Net profit for the period under review reached 17 million euros, which was slightly lower than the like period of last year, which the company said was caused mainly due to fluctuations in exchange rates.

On the other hand Mahindra and Mahindra which is a part of $16 billion Mahindra Group is a large Indian conglomerate with interests in automobile, information technology, finance and a host of other industries.

(Agencies)

Latest News  from Business News Desk