Daimler AG is selling its entire stake in Tata Motors
By Andrew C., 30 Aug, 2010. 0 Comments
Tata Nano Europa
In hopes of raising up to $429 million worth of shares, Daimler AG is offering its entire stake in India's Tata Motors Ltd., according to insiders. Tata Motors produces the world's cheapest car, the Nano, and also owns UK-based luxury brands Jaguar and Land Rover. Daimler is reportedly selling 25.6 million shares at 737.4 rupees ($16.2) to 761.3 rupees each, which is 4% to 7% below the stock's Monday close of 796.75 rupees.
The ordinary shares stand for a 5.34% stake in the firm. Daimler also owns 4.71% of Tata Motors on a fully diluted basis. Early speculations in India indicated that Daimler intends to exit its long-held stake in Tata Motors. Citigroup is managing the share sale in Tata Motors. Shares in Tata Motors have increased by 19% since Feb. 26, the date that the company posted a consolidated net profit for the second straight quarter as sales from its Jaguar and Land Rover unit recovered. Neither Daimler nor Tata Motors have commented on this matter.
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