The acquisition of the Maharashtra government`s 27 per cent stake in Maharashtra Scooters Ltd (MSL) witnessed a deadlock for over three years. Bajaj Auto, the state government`s joint venture partner in the company has agreed to buy out its shareholding for Rs 151.63 a share, reports Business Standard.
Retired Justice Arvind Sawant, appointed arbitrator by the state government, has come out with a valuation of Rs 151.63 a share for the shareholding of Western Maharashtra Development Corporation (WMDC). The corporation is the investment arm of the state government.
Bajaj Auto requires to pay Rs 46.78 crore to WMDC for acquiring its 27 per cent stake. After the acquisition, Bajaj Auto`s shareholding will go up to 51 per cent from the current 24 per cent.
MSL`s investment in various Bajaj group companies as well as in other instruments stood at Rs 174.27 crore on March 31, 2005.
MSL`s investments in the Bajaj group include 3.38 million shares in Bajaj Auto, 1.02 million shares in Bajaj Auto Finance and 1.25 million shares in Bajaj Hindustan.
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