Mahindra First Choice Wheels Ltd, step down unit of automaker Mahindra & Mahindra Ltd, will acquire automotive portal CarandBike.com from NDTV Ltd and other shareholders to further its digital presence. The company will purchase 100% of CarandBike.com for up to Rs 30.45 crore, the automaker said in a stock-exchange filing.
NDTV said in a separate stock-exchange filing that the company and its subsidiary NDTV Convergence Ltd are selling their 45.56% combined stake in the auto portal, operated by Fifth Gear Ventures Ltd, to Mahindra First Choice. The details about the other shareholders could not be ascertained. Mahindra said the objective behind the acquisition is to expand its presence in the digital automotive segment and to integrate its online and offline user experience.
The company will pay Rs 16.44 crore in cash, and the remaining to be discharged through equity shares amounting to around 0.75% of its fully diluted share capital. Mahindra expects to complete the acquisition process by the end of March this year, as per a media report.
Mahindra First Choice Wheels Ltd is a used vehicle firm that leverages its online and physical infrastructure to facilitate the sale and purchase of used vehicles. Its other products include a financing service, and ‘Konnect First’, a connected car device, as per its website.
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