Mahindra & Mahindra Financial Services (MMFS) has extended the date of investment of the third and final tranche for acquisition of shares of Sri Lanka-based Ideal Finance from its existing shareholders to September 30, 2021.
“Due to the Covid-19 pandemic which has disrupted the business environment in both India and Sri Lanka, the Parties have mutually agreed to extend the date of completion of the aforesaid acquisition of shares with an intention to complete the same, latest by 30th September, 2021 (from March-end 2021), subject to necessary regulatory approvals,” MMFS said in a regulatory filing. Accordingly, the Parties will shortly be executing an addendum to the Agreement in this regard, it added.
MMFS had executed a “Share Subscription, Share Purchase and Shareholders’ Agreement” on August 20, 2019 with Ideal Finance and its existing Shareholders (the Company, Ideal Finance & its shareholders together referred as “Parties”) to subscribe/ acquire up to 58.20 per cent of the Equity Share Capital of Ideal Finance, in one or more tranches, for an amount not exceeding Sri Lankan Rupee 200.30 crore by March 2021.
Pursuant to the aforesaid Agreement, the Company, as on date, has acquired 38.20 per cent of the Equity Share Capital of Ideal Finance and the third and final tranche for acquisition of shares from existing investors was due by March 31, 2021. MMFS said it has received the requisite approval from the Reserve Bank of India, for the proposed investment in Ideal Finance.