Tata Sons to buy Tata Steel stake in Tata Motors
Tata Sons to buy Tata Steel stake in Tata Motors
Tata Sons Ltd, the holding company of India`s salt-to-software Tata conglomerate, plans to buy out Tata Steel Ltd`s stake in Tata Motors Ltd on or after June 23, it said in a regulatory filing on Saturday.
Tata Sons will buy about 83.6 million shares in Tata Motors at or around the prevailing price of the stock on the date of the planned acquisition, it said in the filing.
It cited "restructuring of investment portfolio" as the reason for the planned deal.
Tata Motors shares closed at 455.75 rupees in Mumbai trading on Friday.
Tata Sons owned 28.71 percent of Tata Motors at the end of March, while Tata Steel owned 2.9 percent in the vehicle maker.
Tata Sons owned 29.75 percent of Tata Steel at the end of March, while Tata Motors owned a 0.46 percent stake in the steelmaker, according to stock exchange data.
Indian media have reported that Tata Sons planned to reduce crossholdings among group companies.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.