Tata Motors updates on acquisition of Ford India's Sanand plant

Tata Passenger Electric Mobility Limited ("TPEML"), a subsidiary of Tata Motors Limited ("TML"), and Ford India Private Limited ("FIPL" and together with TPEML, "Parties") had executed a Unit Transfer Agreement on August 7, 2022 for acquisition of FIPL's manufacturing plant situated at Sanand, Gujarat, which includes: (i) entire land & buildings; (ii) Vehicle Manufacturing Plant along with machinery and equipment situated therein; and (iii) transfer of all eligible employees of FIPL's vehicle manufacturing operations at Sanand, for a total consideration, exclusive of taxes, of Rs 725.7 Cr (Seven Hundred Twenty Five Crores and Seventy Lakhs) ("Transaction").

Pursuant to the fulfilment of the necessary condition precedents for the transaction, including receipt of relevant government approvals, the Parties have decided to proceed towards completion of the Transaction on 10th January 2023.

Tata Motors Passenger & Electric Vehicles business has delivered market beating growth over the last few years and has strong plans to sustain this momentum, with its robust pipeline of future ready "New Forever" products and proactive investments in electric vehicles. With existing capacities near saturation, this acquisition will unlock an additional state-of-the-art manufacturing capacity of 300,000 units per annum which is scalable to 420,000 units per annum.

As part of the transaction, all eligible employees of FIPL's vehicle manufacturing plant have been offered employment with TPEML on terms, conditions and benefits of service similar to those that are currently availed by them. TPEML would like to take this opportunity to extend a warm welcome to all the eligible FIPL employees who have accepted its offer of employment and who shall become TPEML employees with effect from 10th January 2023.

Shares of Tata Motors Limited was last trading in BSE at Rs. 388.10 as compared to the previous close of Rs. 385.90. The total number of shares traded during the day was 717322 in over 20306 trades.

The stock hit an intraday high of Rs. 392.10 and intraday low of 387.05. The net turnover during the day was Rs. 279640173.00.

Source : Equity Bulls

Keywords

TataMotors INE155A01022 Sanand Gujarat FordIndia