Automobile major Mahindra & Mahindra (M&M) today acquired a majority stake in the Reva Electric Car Company Ltd of Bangalore. As a result, Reva Electric Car Co Ltd. will be renamed as Mahindra Reva Electric Vehicle Co Ltd. Under the agreement, which was signed today by the two companies, M&M will own 55.2% equity in the new company by a combination of equity purchase from the promoters and a fresh equity infusion of over Rs 45 crore into the company.
The buyout makes the Mahindra group a strong global player in the electric vehicle space. The board of Mahindra Reva will be headed by Pawan Goenka, president automotive and farm equipment sector, M&M, as its chairman. The board has five nominees from M&M, two from the Maini family, and one from AEV LLC, California (the Mainis and the US company are the two co-founders of Reva). An independent director will be added to the board later. Chetan Maini of the Maini Group will continue to play a leading role in Mahindra Reva as chief of technology & strategy and will continue to be on the board.
The above article was extracted from Skyline updates of Skyline College. Skyline College is amongst the top MBA and BBA institutes in Delhi, Gurgaon (NCR).
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