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Our Bureau

New Delhi March 12 Mahindra & Mahindra Ltd on Monday announced an open offer for buying a further 20 per cent in Punjab Tractors Ltd and its subsidiaries Swaraj Engines and Swaraj Automotives.

The tractor company has won the bid for acquiring a 43.3 per cent stake in Punjab Tractors last week from private equity firm Actis and the Burman family in a deal that valued Punjab Tractors at about Rs 2,200 crore.

M&M made the offer to buy up to 12.15 million shares from shareholders of Punjab Tractors at Rs 360 per share, the same price that it agreed to pay for the 43.3 per cent stake. Separately, M&M made an offer to buy almost 4,80,000 shares, or 20 per cent, in Swaraj Automotives Ltd, in which Punjab Tractors owns 24.2 per cent, at Rs 244 per share. The company also made an open offer to buy 20 per cent, or 2.48 million shares in Swaraj Engines Ltd, in which Punjab Tractors owns 33.2 per cent at Rs 151 a share. The financing of the three offers would be through internal accruals and/or corporate borrowings, M&M said. The offers, which are not subject to a minimum level of acceptance, open on May 3 and close on May 22.

The Punjab Tractors scrip on Monday closed at Rs 308.35 down from an opening of Rs 314 per share on the Bombay Stock Exchange, while the Swaraj Engines scrip fell 11.5 per cent to close at Rs 146.05 per share. The drop could be driven by the Punjab Government's recent announcement to hold an enquiry into the divestment of Punjab Tractors, say analysts.

Swaraj Automotives, which primarily makes seats for tractors, in not listed on either the BSE or the NSE.

Related Stories:
M&M clinches bid for Punjab Tractors
Mahindra eyes 42% stake in Punjab Tractors
Four submit bids for Punjab Tractors

More Stories on : Open Offers | Mahindra & Mahindra Ltd | Chemicals

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M&M makes open offer for Punjab Tractors, arms

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