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Kubota raises stake worth Rs 1,872 crore in Escorts

 
New Delhi, Nov 18 (IANS) Japan-based farm equipment maker Kubota Corporation as raised its stake in Escorts worth Rs 1,872.74 crore in a bid to "strengthen their partnership".

In a statement, Escorts said that it will issue 9,363,726 equity shares to Kubota through the preferential route at a price of Rs 2,000 per share.

Post allotment, Kubota's total stake in Escorts will be 14.99 per cent.

"Kubota will also make an open offer to the public shareholders of Escorts to acquire up to 26 per cent of the share capital, in accordance with SEBI regulations," the statement said.

As per the statement, JM Financial acted as the financial advisor to Escorts.

Besides, it mentioned that the current promoter group -- Nanda Family -- is not selling any of its shares held in the company.

Through this deal, the company aims to become one of the largest Indo-Japan agriculture collaborations, and thereby become a major player in the farm equipment space.

"Escorts will be the exclusive vehicle for manufacturing and sale of certain products in India and for sourcing from India, including the products to be jointly developed in future," the statement said.

According to Escorts CMD Nikhil Nanda: "This (deal) will enable both companies to enhance the value they have created by leveraging each other's strengths -- be it in technology, market access, or manufacturing processes for engineering excellence.

"With this, Escorts is positioned to become an institution that will serve Indian and global farmers for decades and centuries."

On Thursday, the company's share price on the National Stock Exchange (NSE) shot up over 10 per cent to close at Rs 1,796.

--IANS
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