In a major development, Mahindra & Mahindra said it has cancelled share purchase deal with CLP India. The deal was to sell the entire stake held by its step down arm Mahindra Renewables in Neo Solren Pvt Ltd (NSPL) for Rs 104.67 crore.
In February this year, M&M had announced that its wholly-owned arm Mahindra Renewables would sell its entire stake in three subsidiaries to CLP India.
“Given that the closing has not occurred within the agreed timeframes, the share purchase agreement which was entered into for sale of 93,15,000 equity shares of Rs 10 each of NSPL held by MRPL to CLP India stands terminated on 10th September 2020,” M&M said.
Mahindra Renewables Pvt Ltd (MRPL) had agreed to sell its entire stake aggregating 100 per cent of the paid-up equity share capital in Cleansolar Renewable Energy Pvt Ltd (CREPL), Divine Solren Pvt Ltd (DSPL) and Neo Solren Pvt Ltd (NSPL), wholly-owned subsidiaries of MRPL, to CLP India Pvt Ltd (CLP).
As per the agreement CLP was to buy 93,15,000 equity shares of Rs 10 each of NSPL at a price of Rs 112.37 per share aggregating to Rs 104.67 crore.
The closure of the transaction, originally expected to be completed by May 31, 2020, was extended till September in view of difficulties due to the coronavirus pandemic.