The Hindu Business Line : Four submit bids for Punjab Tractors

Advertisement

New Delhi March 5 Four players submitted bids on Monday for about 43 per cent stake in Punjab Tractors Ltd. According to sources, the bidders include Ashok Leyland, Mahindra & Mahindra, Tata Group (in tie-up with Fiat) and TAFE.

However, sources added that it may just be a three-way tussle. They further said that the majority of the bidders have put in bids at upwards of Rs 350.

Earlier a total of seven firms had evinced interest in purchasing private equity firm Actis' 29.3 per cent stake and the Burman family's 14.2 per cent stake in Punjab Tractors.

Meanwhile, Mahindra & Mahindra Ltd confirmed on Monday its plan to bid for a stake in Punjab Tractors. The company's board has approved a bid, Mahindra & Mahindra said in a statement to the Bombay Stock Exchange without elaborating. The purchase, if it comes through, will help the company to consolidate its position further.

According to sources, the valuation for the 43 per cent stake in Punjab Tractors, in addition to the 14 per cent and 33 per cent stake, which the tractor company has in Swaraj Mazda and Swaraj Engines respectively, could well be at over Rs 1,100 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. Actis has invested about $60 million in Punjab Tractors till date.

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

Stories in this Section
Govt may hike airport charges at peak hours in Delhi, Mumbai, Bangalore

Indian crude basket rises to $60.27 a barrel

US civilian nuclear team seeks Indian partners

Steel producers cut prices on Govt intervention

Four submit bids for Punjab Tractors

Moser Baer to set up thin film solar fab

Cognizant rings Nasdaq bell in Chennai, NY

With Dekoh, have your cake and eat it too!

Canara gets into insurance with HSBC, Oriental Bank

Sensex crashes tracking weak global markets

Fresh wave of selling grips stocks across sectors

Every fourth stock hits lower circuit

Private banks seek out bulk deposits

`No rethink on Fringe Benefit Tax on ESOPs'