Kinetic Motors to Sub-License ‘Kinetic’ brand to Mahindra
Posted on September 2nd 2008Welcome back!
Kinetic Motors yesterday said that it will extend a brand license agreement with the Kinetic Engineering for utilization of “Kinetic” brand and will also sub-license their brand to the Mahindra Two Wheelers.
The deal would be extended for next 25 years with an effect from 1st April’09 and sub-licensing would as well for 25 years period.
For renewal of this Brand License Agreement, KMCL has agreed for a consideration of Rs 7.75 crore to be paid to KEL.
As Rs 2.75 crore has to be paid by or before 31st March’10, the remaining would by way of issuing 5-lakh exchangeable cumulative preference share of Rs 100 each, completely paid up, in share capital of an industry.
Kinetic Motors would spend up to Rs. 29.5 crore in the equity shares of the Mahindra Two Wheelers, subject to shareholders nod and further approvals.
By editor in Auto India News, Mahindra & Mahindra, Uncategorized