Japan’s Kubota picks 10% in Escorts

Maruti Suzuki India said it has launched an updated version of the Dzire priced in the Rs 5.89 lakh-Rs 8.8 lakh range. The manual variants are priced between 5.89 lakh and Rs 8.28 lakh, while automated gear shift ones come at Rs 7.31 lakh to Rs 8.8 lakh. “2020 Dzire offers next generation K-series engine with segment first idle start-stop technology,” executive director (marketing and sales) Shashank Srivastava said.

Sydney/Washington, March 20: Shattered airlines were left counting the cost of government support as countries from the United States to New Zealand set out conditions for bailouts needed to absorb the shock of the coronavirus pandemic. Conditions include provisions that loans may convert to government equity stakes, while US airlines cannot increase executive pay or provide “golden parachutes” for two years. Air New Zealand’s bailout also depends on the company suspending its dividend and paying interest rates of 7 to 9 per cent.

New Zealand on Friday offered its national carrier a NZ$900 million ($510 million) lifeline, which finance minister Grant Robertson said would help it survive after the government banned all non-resident arrivals to the country.

“That puts us in a very good position over the next several months,” Air New

Zealand chief executive Greg Foran told reporters of the loan, which it will not draw down immediately. “We would expect the airline industry will look different at the end of this. Not all airlines are going to survive.”

Under the $58 billion US proposal for passenger and cargo carriers, the US Treasury Department could receive warrants, stock options, or stock.

“We are not bailing out the airlines or other industries – period,” US Senate appropriations committee chairman Richard Shelby said. “Instead, we are allowing the treasury secretary to make or guarantee collateralised loans to industries whose operations the coronavirus outbreak has jeopardised.”

Norway will back airlines with credit guarantees worth up to 6 billion Norwegian crowns ($537 million), half of them to Norwegian Air Shuttle ASA. Conditions include raising money from commercial banks and the equity market.

Finland, which owns a 56 per cent stake in Finnair, said it would guarantee a 600 million euro ($645 million) loan for the state carrier. The firm said it was implementing a funding plan that included drawing on available credit lines, sale and leasebacks of planes. I

The International Air Transport Association has forecast the industry will need up to $200 billion of state support.

Japanese tractor maker Kubota Corporation will acquire a 10 per cent equity stake worth Rs 1,041 crore in Escorts, India’s third largest tractormaker, on a post capital reduction basis, the company said.

Escorts will issue and allot 12,257,688 equity shares through a preferential issue to Kubota at an issue price of Rs 850 per equity share, subject to shareholders' and regulatory approvals.

Simultaneously with the preferential issue, Escorts will acquire a 40 per cent stake in Kubota Agricultural Machinery India, the marketing and sales company of Kubota in India.

The existing 60:40 joint venture between Kubota and Escorts, namely Escorts Kubota India will continue to operate.