News: M&M’s erstwhile subsidiary SYMC has found a new suitor i.e. KG Consortium with Seoul Bankruptcy code also approving a rehabilitation plan. KG group (chemical to steel firm based out of South Korea) will investRs 5,523 crore in SYMC for 80.5% stake with outstanding due of concerned parties to be partly restructured and partly converted to equity.
View: M&M will get a cash payment of Rs 61 crore with its equity stake in SYMC reduced to 5.2%. In the consolidated financial results, M&M had ceased consolidating SYMC and its subsidiaries, as subsidiaries from December 28, 2020 and has classified it as discontinued operations. Therefore, it will have no impact on its financials.
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