The Hindu Business Line : Tata Group may bid for Actis' stake in Punjab Tractors

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Tata Group may bid for Actis' stake in Punjab Tractors

Neha Kaushik

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New Delhi Feb. 5 The Tata Group is learnt to be in the fray for private equity major Actis' 29 per cent stake in Punjab Tractors Ltd (PTL). The Group is learnt to have evinced interest for purchasing the stake, merchant banking sources said.

Sources added that other players who have evinced interest in the stake include Mahindra & Mahindra, TAFE and Sonalika Tractors.

Actis had given financial services firm Citi the mandate to call bids from potential buyers for its stake.

The private equity player is the single largest shareholder in PTL with a stake of 29 per cent.

The private equity firm had acquired 23.45 per cent of the stake in mid-2003 from the Punjab Government at Rs 153 per share. Interestingly, Actis was the sole bidder for the stake at the time.

Actis has invested about $60 million in PTL till date. The firm's investment was one of the first successful private equity-backed privatisations in the country.

It could not be ascertained whether the Burmans, who hold 14.15 per cent stake in PTL, would be looking for an exit option as well.

PTL, which has a dominant presence in North India, also has a 14 per cent stake in Swaraj Mazda, 33 per cent in Swaraj Engines and 24 per cent in Swaraj Automotives. Earlier this year, the tractor company had appointed consulting firm Accenture to review the firm's strategy and organisational structure.

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