Tata Motors today said its $360 million (around Rs 2,320 crore) deal to sell 43 per cent stake in Tata Technologies to Warburg Pincus has been called off due to non-receipt of regulatory nod and missing of internal performance target by its Singapore-based arm.
As per the transaction announced on June 15, 2017, Warburg Pincus was to acquire approximately 43 per cent stake in Tata Technologies from Tata Motors and other Tata entities.
“However due to delays in securing regulatory approvals as well as due to the recent performance of the company not meeting internal thresholds because of market challenges, the parties to the transaction have mutually decided not to proceed with the closure of the transaction,” Tata Motors said in a BSE filing.
Tata Motors will continue to explore strategic options to sell its stake in Tata Technologies and remains positive on the outlook of the business, it added.
As per the proposed deal, an affiliate of Warburg Pincus was to acquire around 30 per cent from Tata Motors and its subsidiary Sheba Properties as well as Tata Capital’s entire 13 per cent stake.