Financial Daily from THE HINDU group of publications
Saturday, Jan 08, 2005
Financial Daily from THE HINDU group of publications Saturday, Jan 08, 2005 |
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NBFCs Money & Banking - Mergers & Acquisitions Tata Finance to merge with Tata Motors Our Bureau
Mumbai , Jan. 7 THE Tata Group has proposed to merge its non-banking finance company, Tata Finance Ltd with Tata Motors Ltd. The boards of the two companies are slated to meet on January 10 to approve the merger plan, the companies informed stock exchanges today. Talks of the merger of the two companies have been doing the rounds ever since the Tatas had pumped in over Rs 300 crore to save the finance company, which had suffered a loss of over Rs 400 crore in 2001-02. Tata Finance is in hire purchase business mainly financing trucks and cars. In 2001, the company had sacked its Managing Director, Mr Dilip Pendse, and four senior executives as they were allegedly involved in unauthorised financial transactions including diversion of funds to Tata Finance Subsidiary Niskalp Investment and Trading Company. Tata Motors' finance subsidiary, Bureau of Hire Purchase, and Tata Finance have already started joint marketing under the common brand Tata Motors Finance Ltd. Tata Finance has come out of the debt in 2003-04 and reported a net profit of Rs 16.76 crore against a loss of Rs 49.66 crore in the previous year. Tata Motors will also consider the merger of its two subsidiary companies Telco Dadajee Dhackjee Ltd and Suryodaya Capital & Finance (Bombay) Ltd with the Company.
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