Tata Sons to increase stake in Tata Motors
MUMBAI: Tata Sons Ltd, the holding company of India’s saltto-software Tata conglomerate, plans to buy out Tata Steel Ltd’s stake in Tata Motors Ltd on or after Friday, it said in a regulatory filing on Saturday.
Tata Sons would buy about 83.6 million shares in Tata Motors at or around the prevailing price of the stock on the date of the planned acquisition, it said.
It cited “restructuring of investment portfolio” as the reason for the planned deal.
Tata Motors shares closed at 455.75 rupees (RM30.23) in Mumbai trading on Friday.
Tata Sons owned 28.71 per cent of Tata Motors at the end of March, while Tata Steel owned 2.9 per cent in the vehicle maker.
Tata Sons owned 29.75 per cent of Tata Steel at the end of March, while Tata Motors owned a 0.46 per cent stake in the steelmaker, according to stock exchange data.
Indian media have reported that Tata Sons planned to reduce crossholdings among group companies.