The Piaggio's stake, therefore, is being offered to Singhanias at over 70 per cent discount to LML's price at NSE. The LML scrip yesterday closed at Rs 50.25 at NSE.

The settlement brings down the curtain on the acrimonious dispute between Piaggio and LML.

The termination of the JV has brought a windfall of Rs 46 crore for LML as Piaggio will pay it Rs 23.65 crore in consideration of termination of all contracts including cessation of non-competition obligations assumed by the Italian company and of rights of LML and another Rs 13.55 crore as subvention payment in its capacity as a co-promoter of Vespa Car Company Ltd(VCCL). Piaggio will also not claim refund of the Rs 8.80 crore paid to LML as advance share application money.

Moreover, Piaggio shall also transfer the entire shareholding in Vespa Car Company Limited (28 per cent) ``to LML and/or its nominees for a total consideration of Re 1.'' Apart from this, the agreement also says that ``Piaggio will pay a sum of Rs 14.35 crore as subvention payment in its capacity as a co-promoter of Vespa Car Company Limited.

LML Limited had sent an intimation to the stock exchanges in connection with the dispute between Piaggio, LML and its Indian promoters Saryodaya Investment and Trading Company Limited and Goldrock Investments Limited yesterday.

``A settlement agreement between the two companies was executed yesterday, subject to required approvals and compliance of certain obligations by the respective parties,'' an LML release said. The statement said that the Italian company would become free to set up any business in India, including competing business of LML,except manufacture of motorised two-wheelers powered with lateral engine till end of the year 2007.

As per the settlement, the joint venture agreements of LML and VCCL with Piaggio would be terminated with LML's exclusivity also getting cancelled The statement said that LML would be free to export all vehicles, except the four-stroke scooter (ET-4) which would be permitted to export only after December 31, 2007.