Mahindra & Mahindra announced its arm Mahindra Renewables has canceled the pact to sell its entire stake in solar subsidiary Neo Solren to CLP India, a part of Hong Kong-based CLP Group.
Notably, in February this year, Mahindra Renewables had agreed to sell its entire stake in three subsidiaries (Cleansolar Renewable Energy, Divine Solren and Neo Solren) to CLP India for around Rs 340 crore.
As per the agreement, CLP India was supposed to buy 93,15,000 equity shares of Rs 10 each in Neo Solren at Rs 112.37 per share, aggregating to Rs 104.67 crore.
Mahindra & Mahindra canceled the pact citing delay in sale closure as the reason.
“Given that the closing has not occurred within the agreed timeframes, the share purchase agreement which was entered into for sale of 93,15,000 equity shares of Rs 10 each of Neo Solren held by Mahindra Renewables to CLP India stands terminated on September 10, 2020”—said Mahindra & Mahindra in its latest filing.
The sale of Neo Solren—originally expected to be completed by May 31—was extended till September because of the coronavirus pandemic.
Neo Solren was formed to set up and operate a 42 MW solar photovoltaic power plant at Wadekothapally, Warangal District, Telangana, which is operational from October 2017.
Mahindra Renewables has already completed the sale of its entire stake in subsidiary Divine Solren to CLP India.
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