Kinetic Divests Entire Mahindra Two Wheeler Stake

Mahindra Two Wheelers which is part of US$ 16.7 billion Mahindra Group. However, Kinetic Engineering announced today that they have has sold their entire stake in Mahindra Two Wheelers Limited to Samena Capital. Which is a private equity investment group focussing on Asia and Middle East.

Kinetic had acquired stakes in November 2008. When Kinetic Motor Company Limited, sold its two wheeler business assets to Mahindra two wheeler, for cash as well as 20% equity stake. Kinetic Motor was merged with Kinetic Engineering Limited in 2012 and the stake was transferred to the latter.

Also Read: Top 5 Motorcycle Launches In 2014

Kinetic will receive approximately Rs. 1821 million and after certain committed payments including NCD repayments, cost of financing etc. The total amount would be Rs. 1098 million, which Kinetic will utilise for business operations.

"Kinetic is extremely proud of its partnership with M&M. We are certain that MTWL will grow from strength to strength to become a significant player in the two-wheeler industry. Kinetic is now focused on building its Automotive Systems business through its various group companies," explained Sulajja Firodia Motwani, Vice Chairperson of Kinetic Engineering.

Also Read: List Of Cars And Bikes After Excise Duty Cut

President, Two Wheeler Sector, Mahindra & Mahindra, Anoop Mathur explains they are happy with the association with Kinetic group. They helped Mahindra get into the two wheeler industry.

Mahindra welcomes new partner Samena Capital during a period, when their business is growing strongly. Owing to the success of their Centuro motorcycle which has been developed using customer feedback.

Ramesh Venkataraman, Senior Partner at Samena Capital stated,"We are delighted to be partnering with Mahindra & Mahindra to help build Mahindra Two Wheelers into a leading global player."