The Hindu Business Line : Vectra to buy out remaining 8% in Tatra

Advertisement

Mumbai Feb. 19 Vectra Group is set to buy out the remaining 8 per cent in commercial vehicle manufacturer Tatra. The group holds 92 per cent in the Czech company after a recent 80.5 per cent acquisition from the US-based Terex Corporation; Vectra was earlier holding 11 per cent in the company. The due diligence has commenced and will shortly end in April, said Mr R.K. Rishi, Chairman, Vectra Group.

The remaining 8 per cent of the company comprises coupons (which were given them during the Czech era) of 34,000 individual investors. The cash-strapped Czech Government offered these coupons to individual investors who wished to invest in State-run companies. Vectra will now have to go by local laws to pick up the stake though the amount to be invested is not known.

The acquisition will enable Vectra to have total say on the company's existing operations in the Czech Republic and Bangalore and future product development for specific markets.

To enhance its presence in countries such as India, Tatra Vectra Motors has decided to venture into the tipper and trailer segment and has joined hands with Kamaz, Russia. The truck and tipper range (multi-axle) would be introduced in the country followed by the tractor-trailer range. The vehicles will be imported in SKD (Semi Knock Down) condition and assembled at Tatra's Hosur plant in Bangalore and will have a local content of 10 per cent. They will have a GVW (Gross Vehicle Weight) of 25 - 30 tonnes with a payload capacity of 20 tonnes. To meet new production schedules with new product offerings, the Bangalore plant will be upgraded with a Rs 50-crore investment.

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

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

Stories in this Section
Major fire at Cadila Pharma

L&T bags contract worth $250 m

Tata Tea to divest stake in northern operations

MTL may be merged with Falcon with retrospective effect

Vectra to buy out remaining 8% in Tatra

Suprajit to set up cable unit in Singur

Ceat plans to set up truck radial facility

Indian power cos flock to Africa, Middle East

DGH disallows ONGC's gas discovery in KG basin

Chetra Industrial plans joint ventures in India

Chevron chief visiting India

`Punish cos for Clause 49 non-compliance'

MHRA clears Strides plant

Public sector units revamp board may come under PMO

Hatsun Agro targets 4,000 `pure' dairy farms

Small car: Ford to leverage emerging markets resources