M&M makes $ 4.9bln open offer for PTL and subsidiaries

New Delhi, Mar 12 (UNI) Mahindra and Mahindra has made an open offer to purchase a further 20 per cent share in Punjab Tractors Ltd and its subsidiaries for 4.9 billion dollars.

Last week, the company along with its arm Mahindra Holdings&Finance Ltd, won the bid to acquire a 43.3 per cent stake in Punjab Tractors from Actis Group and Burman family at a price of Rs 360 per share. At this price, PTL was valued at Rs 2,200 crore.

The company proposes to acquire up to 12,151,140 fully paid-up equity shares from the shareholders of PTL at Rs 360.

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

A proposal to acquire 20 per cent equity each in Swaraj Engines and Swaraj Automotives at Rs 151 and Rs 244 per share respectively has also been made by M&M.

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.

Kotak Investment Banking is acting as the advisers to the company The offers, which are not subject to a minimum level of acceptance, open on May 3 and close on May 22.

UNI