M&M acquires 43.3% stake in Punjab Tractors

New Delhi, Mar 9 (UNI) Mahindra&Mahindra Ltd today announced that it has signed a deal to acquire 43.3 per cent stake in Punjab Tractors Ltd from Actis Group and Burman family at a price of Rs 360 per share.

The company beat Ashok Leyland and Tafe, even as Tata Motors with Fiat-CNH, Sonalika Group, Escorts, Italy's Sam Duetz-Fahr opted out.

Punjab Tractors Ltd, in operation since 1974, is a significant player in the tractor industry. Its 'Swaraj' brand of tractors and farm equipment enjoy strong brand loyalty with customers in Northern and North Western regions.

''The acquisition adds significantly to our core business of farm equipment. We expect this to enhance value for our shareholders through the synergies which our farm equipment business and Punjab Tractors will together generate,'' company Vice Chairman and Managing Director Anand Mahindra said.

The company acquired the 29 per cent and 14.5 per cent stakes of Actis and Burman family, respectively, with its subsidiary Mahindra Holdings and Finance Ltd.

At this price of Rs 360 per share, the Mahindras are expected to shell out Rs 900 crore and Punjab Tractors is roughly valued at over Rs 2,000 crore.

Kotak Investment Banking acted as the advisers to the company while the sellers were advised by Citigroup Global Markets.

Khaitan&Co were the legal advisors to the company, whereas Wadia Ghandy advised the sellers on legal matters.

The transaction is subject to the receipt of requisite approvals, the company said in a statement issued to BSE.

UNI