SML Isuzu Limited has informed the Exchange about a copy of the draft letter of offer ( DLoF ), with respect to the open offer made by Mahindra & Mahindra Limited to the public shareholders of the Company.
SMLMAH · price
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Mahindra & Mahindra Limited (M&M) has filed a Draft Letter of Offer (DLoF) dated May 13, 2025 for a mandatory open offer to public shareholders of SML Isuzu Limited, triggered by its purchase agreements with existing promoters Sumitomo Corporation and Isuzu Motors Limited. M&M is offering to buy up to 37,62,628 equity shares (26% of voting share capital) at INR 1,554.60 per share, amounting to a maximum consideration of about INR 584.94 crore. The underlying deals involve M&M buying 43.96% from Sumitomo and 15% from Isuzu Motors at INR 650 per share, totalling around INR 554.65 crore. Upon completion, M&M will take over as the new promoter of SML Isuzu, and Sumitomo will be reclassified from promoter to public. The tendering period is expected to run from June 19, 2025 to July 2, 2025, subject to Competition Commission of India approval.
This signals a change of control at SML Isuzu, with M&M set to become the new promoter after acquiring stakes from Sumitomo and Isuzu Motors. Public shareholders have a clear window to exit at INR 1,554.60 per share, which may act as a floor for the stock price during the tendering period. Investors should also watch for the independent directors' recommendation, expected by June 17, 2025.