Kinetic Engineering, which held a 20 percent stake in Mahindra Two Wheelers Ltd (MTWL), has exited the company by selling its entire equity stake to Samena Capital, a private equity investment group focused on Asia and the Middle East.

The Kinetic Group had originally acquired the stake in November 2008, when group company, Kinetic Motor Company sold its two-wheeler business assets to MTWL, for cash as well as a 20 equity stake. Subsequently, KMCL was merged with Kinetic Engineering in 2012, and the stake was transferred to it.

The deal is pegged at Rs 182 crore and after certain committed payments including NCD repayments and cost of financing, the net proceeds would amount to approximately Rs 110 crore which KEL will use for its business operations.

Sulajja Firodia Motwani, vice-chairman, KEL, said, “We are divesting our stake in MTWL to invest in meeting the requirements of our automotive systems business in KEL. We will utilise the proceeds to meet various obligations including working capital and FCCB/ debt repayment requirements to strengthen our balance sheet. We have made good progress in building a business in engine and transmission systems in KEL, a motor business in Kinetic Taigene, as well as automotive electronics business in the Kinetic Ducati alliance.”

According to Anoop Mathur, president, Two Wheeler Sector, Mahindra & Mahindra, “We welcome our new partner Samena Capital at a time when our business is growing strongly driven by rising demand for the Centuro motorcycle which has been developed based on keen consumer insights.”