Mahindra & Mahindra wins the race for Punjab Tractors, to acquire 43.3% stake

Mahindra & Mahindra Ltd on March 09, 2007 has announced that the Company has signed a deal to acquire 43.3% stake in Punjab Tractors Ltd at a price of Rs 360 per share.

The Company along with its subsidiary Mahindra Holdings and Finance Ltd agreed to acquire the stake from Actis Group and the Investment companies of the Burman family, subject to the receipt of requisite approvals.

Punjab Tractors Ltd is a significant player in the tractor industry, having been in operation since 1974. Its "Swaraj" brand of tractors and farm equipment enjoy strong brand loyalty with customers.

Mr. Anand Mahindra, Vice Chairman & Managing Director, of the Company, said, "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."

Kotak Investment Banking advised the Company for this transaction, whereas the sellers were advised by Citigroup Global Markets.

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

Source : Equity Bulls

Keywords