Sources further said that Mahindra & Mahindra is looking at a valuation of ₹1,400 per share to ₹1,500 per share for SML Isuzu, which is a discount of 11% to 17% from the current price at which SML Isuzu is trading.
M&M’s board is likely to meet this week to evaluate the proposal and that the deal is likely to help M&M expand into the trucks and buses segment.
In response to CNBC Awaaz’s query, M&M said that it does not wish to comment on market speculation, while SML Isuzu has not responded to the query yet.
At the end of the December quarter, promoters of SML Isuzu, Sumitomo Corporation, had a 43.96% stake in the company.
The news was also part of CNBC-TV18’s D-street chatter on Friday, March 21.
CNBC-TV18 had reported back in June 2023 that JBM Auto is among the top contenders to acquire SML Isuzu as Sumitomo Corporation, SML Isuzu’s Japanese promoters were looking to exit their India operations, sources had said back then.
Shares of M&M are off the lows of the day, currently trading 1.8% lower at ₹2,753.
Shares of SML Isuzu have recovered from the day’s low, currently trading 1% higher at ₹1,665.6.
Shares of JBM Auto have seen a sharp spike post this newsbreak, currently trading 12% higher at ₹630.
