Mahindra & Mahindra on Monday made a Rs 4.9 billion open offer for a further 20% in Punjab Tractors and its subsidiaries, as required by law after it won the bidding for a 43.3 % stake last week, reports Financial Express.
Mahindra, India`s top tractor and utility vehicle maker, and subsidiary Mahindra Holdings & Finance are buying stakes held by private equity firm Actis and India`s Burman family in a deal that values Punjab Tractors at nearly Rs 22 billion.
Mahindra made an offer to buy up to 12.15 million shares from shareholders of Punjab Tractors, which makes tractors and farm equipment, at Rs 360 a share, the same price that it agreed to pay for the 43.3% stake.
Separately, Mahindra made an offer to buy almost 480,000 shares, or 20%, in Swaraj Automotives, in which Punjab Tractors owns 24.2%, at Rs 244 a share.
The company also made an open offer to buy 20% or 2.48 million shares in Swaraj Engines, in which Punjab Tractors owns 33.2%, at Rs 151 a share.
The financing of the three offers, totalling Rs 4.9 billion, would be through internal accruals or corporate borrowings.
The offers, which are not subject to a minimum level of acceptance, opens May 3 and closes May 22.
Source : Myiris