Mahanagar Gas Limited (MGL) on Tuesday announced that it has entered into Shareholders’ Agreement (SHA) with 3EV Industries Private Limited to acquire 30.97 per cent shareholding in the company. “We wish to inform that subsequent to execution of Share Subscription Agreement (SSA), Mahanagar Gas Limited has entered into Shareholders’ Agreement (SHA) with 3EV Industries Private Limited (3ev), Founders, Promoters and other Shareholders of 3ev, to acquire 30.97% shareholding in 3ev,” it said in a regulatory filing.
It further added that the agreement has been entered for acquiring 30.97 per cent shareholding and voting rights in 3EV through equity instruments. Mahanagar Gas also informed of the issue of 18,343 equity instruments (10 equity shares of face value of Rs 10 each and 18,333 Series A CCPS of face value of Rs 100 each), for a total consideration of Rs 96 crore. The equity instruments will be issued in tranches as per terms and conditions of the SHA, it said.
Post this, MGL will have the right to appoint 1 director on the board of 3EV and 1 board observer. MGL will also have the right to subscribe to 30.97 per cent of share capital of 3EV and has the right to subscribe shares on a pro-rata basis for every further issue of shares. Further, prior written consent of MGL will be required for Affirmative Vote Matters which, inter alia, includes matters related to change in capital structure of the company.
Earlier in January, Mahanagar Gas posted its third quarter earnings with revenues from operations at Rs 1,568.76 crore. Total sales volumes reported by Mahanagar Gas in the December Quarter at 3.671 mmscmd (million standard cubic meter per day) improved 2.69 per cent sequentially. The same also grew 7.6 per cent year on year.
