M&M Unit Exits CIE Automotive with 126 Million Euro Share Sale

Mahindra and Mahindra Completes Exit from CIE Automotive S.A

Mahindra and Mahindra has made a complete exit from Spanish firm CIE Automotive S.A, following the sale of its remaining balance holding of 3.58% through a 126 million euro share sale. This move marks the second share sale by the diversified auto major in CIE Automotive S.A, with the previous part stake sale taking place in December.

According to an exchange disclosure on May 14, Mahindra Overseas Investment Company (Mauritius) Limited, a wholly owned subsidiary of Mahindra and Mahindra, sold its remaining stake representing 3.58% of CIE Automotive S.A outstanding shares for a total consideration of approximately EUR 126 million. As a result, the holding of MOICML in CIE Automotive S.A. would become nil and it would cease to be the associate of MOICML.

The reason behind the divestment was not specified by Mahindra and Mahindra. BNP Paribas acted as the sole global coordinator in the sale, as per an overseas disclosure. This move comes after a part stake sale by MOICML in December, where it sold part of its stake representing 3.58% of CIE Automotive S.A outstanding shares for a total consideration of around 119 million euros.

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Notably, listed firm CIE Automotive India Limited (previously known as Mahindra CIE Automotive Limited) changed its name to its current form in June 2023 to align with its Spanish parent following the divestment of shares by the Mahindra Group.

In related news, Mahindra and Mahindra acquired a majority stake in SML Isuzu Ltd last year with a total investment of Rs 555 crore in a bid to establish a strong presence in the >3.5 T CV segment.