The Hindu Business Line : Only 3 players bid for Punjab Tractors stake

While earlier four players (Ashok Leyland, Mahindra & Mahindra, TAFE and Tata-CNH) had evinced interest for 43 per cent stake in Punjab Tractors, sources said that the Tata-CNH combine had not submitted a bid by the deadline. Indications are that there may be further negotiations over the next day or two before the final winner is announced.

Meanwhile, sources close to the development said that Ashok Leyland had bid the highest for acquiring private equity firm Actis' 29.3 per cent stake and the Burman family's 14.2 per cent stake in Punjab Tractors. "Mahindra & Mahindra and Ashok Leyland are the main contenders for the stake as the bids from both are neck-to-neck," the source said.

For Ashok Leyland, a winning bid would not only allow them to foray into the tractor market but also give them the opportunity to strengthen their position in the commercial vehicle market, as Punjab Tractors also has 14 per cent in LCV firm Swaraj Mazda.

"It will also give them an opportunity to access technology from Isuzu, since Swaraj Mazda has a technical tie-up with the Japanese firm. However, they will only be able to get the benefits if they are further able to increase stake in Swaraj Mazda," an industry analyst said.

According to sources, the valuation for the 43 per cent stake in Punjab Tractors, in addition to the 14 per cent and 33 per cent stake, which the tractor company has in Swaraj Mazda and Swaraj Engines, respectively, could well be at over Rs 1,100 crore.

More Stories on : HCV/LCV/Tractors | Mergers & Acquisitions

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Most AAI employees reject Delhi airport co's incentive offer

Outlook for rogue westerly system maintained

TRAI keen on lower global roaming tariffs

Rs 35,000-cr infusion fails to lift irrigation benefits

`Inflation will moderate when wheat, potato crops come in'

Fed cut looms large

`Novartis to continue with Glivec case'

Tata's Rs 1-lakh car may come with 600cc petrol engine

Only 3 players bid for Punjab Tractors stake

L&T in talks with Toshiba to set up jt venture in power

Coffee productivity down 15% in last 5 years

Markets stage partial recovery

Cement stocks stubborn, steel wilts under pressure