The results of the Punjab Tractors stake sale are likely to come by Thursday evening. As reported earlier, Ashok Leyland and Mahindra and Mahindra (M&M) are the two leading bidders.
It is believed that M&M has proposed a highly unique offer of a mix of cash and equity for acquisition of the controlling 43.5% stake in Punjab Tractors Limited, put up for sale by current stake owners, private equity owner Actis and the Burman family. The offer works out to Rs. 340 a share, valuing the company at over Rs. 2100 crores, as against Ashok Leyland’s reported all-cash offer of Rs. 320 per share.
Both the offers demanded some guarantees from the seller on certain liabilities of the company, including its outstanding, inventories and legal tussle with Japanese firm Sumitomo.
Read the articles in The Economic Times 1 & 2 and Business Standard.
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