MUMBAI: Kinetic Motor Company today said it will extend the brand licence agreement with Kinetic Engineering for the use of ‘Kinetic’ brand and will also sub-licence the brand to Mahindra Two Wheelers.
The pact would be extended for another 25 years with effect from April 1, 2009 and the sub-licensing would also be for 25-year-period, Kinetic Motor said in a filing to the Bombay Stock Exchange.
“For renewal of the said Brand Licence Agreement, KMCL has agreed for a consideration of Rs 7.75 crore to be paid to KEL,” the filing added.
While Rs 2.75 crore has to be paid on or before March 31, 2010, the rest would by way of issuing five lakh redeemable cumulative preference shares of Rs 100 each, fully paid up, in the share capital of the company.
Further, Kinetic Motor would invest up to Rs 29.5 crore in equity shares of Mahindra Two Wheelers Pvt Ltd, subject to shareholders nod and other approvals. These decisions were taken at the Kinetic Motor’s board meeting held today.