The Hindu Business Line : Ex-MD may bid for stake in Punjab Tractors

Advertisement

New Delhi Feb. 9 Even as the bidding process for Punjab Tractors is set to close early next week, new contenders have entered the race for acquiring majority stake in the tractor firm.

According to sources, Mr Yash Mahajan, former Managing Director of Punjab Tractors, is planning to put in a bid in collaboration with a consortium of financial institutions.

Sources added that the Tatas may be filing a joint bid with Case New Holland, which is majority owned by Fiat. Tata has tied up with Fiat to jointly launch cars and share dealerships and could expand its partnership with the Italian firm to include tractors as well.

Non-binding bid

Mahindra & Mahindra has already said that it had put in a non-binding bid, and sources added that other players including TAFE and Sonalika would also be putting in a bid.

Sources said the bidding process is for Actis' 29 per cent plus the Burman family's 14.15 per cent stake in Punjab Tractors. The valuation of the same could come to well over Rs 1,000 crore.

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

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.

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.

More Stories on : Mergers & Acquisitions | HCV/LCV/Tractors

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page