Tata Motors sells 20pc stake in Telcon to Hitachi
Wednesday, 31 March 2010
TOKYO, Mar 30 (PTI): Auto major Tata Motors today said it has sold 20 per cent stake in Telcon, its construction equipment joint venture with Japan's Hitachi, to its partner for Rs 11.59 billion.
Post the transaction, Tata Motors will own 40 per cent stake in Telcon, while Hitachi will have 60 per cent, the company said in a statement.
Standard Chartered and ABZ partners acted as financial and legal advisers for the deal, it added.
Telcon is one of the leading providers of mining, infrastructure, construction and agricultural equipment and services.
It was set up in 1999 as a wholly-owned subsidiary of Tata Motors and later in 2000, Hitachi was roped in as a joint venture partner by offloading 20 per cent stake, which was subsequently increased by another 20 per cent.
The stake sale by Tata Motors in Telcon is part of its strategy to sell stakes in its group companies to raise funds to repay debt.
Post the transaction, Tata Motors will own 40 per cent stake in Telcon, while Hitachi will have 60 per cent, the company said in a statement.
Standard Chartered and ABZ partners acted as financial and legal advisers for the deal, it added.
Telcon is one of the leading providers of mining, infrastructure, construction and agricultural equipment and services.
It was set up in 1999 as a wholly-owned subsidiary of Tata Motors and later in 2000, Hitachi was roped in as a joint venture partner by offloading 20 per cent stake, which was subsequently increased by another 20 per cent.
The stake sale by Tata Motors in Telcon is part of its strategy to sell stakes in its group companies to raise funds to repay debt.