M&A

M&A

Japan's Kubota to acquire addnl 5.9% stake in tractor maker Escorts for Rs.1,873-Cr

Press Release,   Press Release  

Osaka, Japan-based Kubota Corporation is to acquire an additional 5.9% stake in Faridabad-based, publicly listed tractor manufacturer Escorts Ltd for INR 1,873 crore. Escorts will allot 93.64 lakh equity shares through a preferential issue to Kubota at INR 2,000 apiece. Post this deal, Kubota's stake will rise to 14.99%. Kubota will also make an open offer to the public shareholders of Escorts to acquire up to 26% of the share capital in line with Sebi norms. JM Financial acted as the financial advisor, Transaction Square as the transaction advisor, and DMD Advocates as the legal advisor to Escorts on the transaction. Kubota will become a joint promoter of Escorts along with the Nanda family, which holds a 36.59% stake. The name of the company will be changed from 'Escorts Ltd' to 'Escorts Kubota Ltd'. Kubota will look at merging its subsidiaries in India - including Kubota Agricultural Machinery India Pvt Ltd and Escorts Kubota India Pvt Ltd - into Escorts Kubota.