SML Isuzu's shares down 10% today: Here we decode why
What's the story
SML Isuzu Ltd's shares have plummeted by 10% today. It is now trading at ₹1,596.10 per stock on the National Stock Exchange (NSE).
The fall was prompted by Mahindra & Mahindra's (M&M) recent announcement of its acquisition plans for the company.
The leading passenger and commercial vehicle manufacturer announced in an exchange filing that it plans to acquire a 58.96% stake in SML Isuzu, for ₹555 crore.
Acquisition
M&M to acquire majority stake in SML Isuzu
M&M has announced plans to acquire a stake in SML Isuzu from its promoters and Isuzu Motors. The acquisition will be priced at ₹660 per share.
M&M will also extend an open offer to acquire another 26% share from eligible public shareholders of SML Isuzu, at ₹1,554 per stock.
This open offer price is a 13% discount to SML Isuzu's closing price last Friday.
Other bidders
JBM Auto's interest in SML Isuzu
Another major player in the industry, JBM Auto, was also said to be interested in acquiring SML Isuzu in 2023, as per CNBC-TV18.
To note, on March 24, JBM Auto's stock surged sharply after CNBC Awaaz reported that M&M was in talks to acquire SML Isuzu, which alleviated fears of a heavy cash outgo from JBM Auto.