In order to independently pursue growth in China, the world’s largest tractor manufacturer, Mahindra & Mahindra, has announced it is selling its entire stake in a Chinese tractor joint venture company. The company in the stock exchange filing said that Mahindra Overseas Investment Co. (Mauritius) Limited (MOICML), a wholly owned subsidiary of the company, has agreed to sell its entire shareholding of 51% in Mahindra Yueda Yancheng Tractor Co. Ltd (MYYTCL) worth $12.3 million to its partners, Jiangsu Yueda Investment Co. Ltd, Jiangsu Yueda Group Co. Ltd and Yan Bingde. Jiangsu Yueda Group will buy a 39% stake, Yan Bingde will buy a 10% stake and Jiangsu Yueda Investment will buy 2% in the company, according to the company filing.
Mahindra said it would evaluate the market opportunity to introduce rice transplanters, harvesters and other farm equipment in the country. However, the deal is subject to regulatory approval and is likely to be completed in the coming months, the company said Mahindra set up the joint venture firm in 2008. In its 2016-17 financial year, the company posted revenues of $52 million.
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