Japan's Kubota Corp to acquire 10% stake in Escorts for ₹1,042 cr
The Hindu Business Line|March 21, 2020
Japan's Kubota Corp to acquire 10% stake in Escorts for ₹1,042 cr
Escorts to allot 1.23-crore shares through preferential issue to Kubota at ₹850 per share

Japanese tractor and machinery manufacturer Kubota Corporation has entered into an agreement to acquire 10 per cent stake, on a post-capital reduction basis, in Indian engineering conglomerate Escorts Ltd, for ₹1,042 crore.

Kubota’s investment will constitute 9.1 per cent stake on a precapital reduction or 10 per cent on a post-capital reduction basis. Escorts will allot 1.23 crore shares through a preferential issue to Kubota at ₹850 per share, Escorts said in a regulatory filing.

The price represents a 48.21 per cent premium over the last traded price on March 19. JM Financial was the financial and transaction advisor to Escorts Ltd.

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March 21, 2020