Tata Motors to buy out partner s stake in bus joint venture Tata Marcopolo for Rs 100 crore
Tata Motors to buy out partner’s stake in bus joint venture Tata Marcopolo for Rs 100 crore
Tata Marcopolo Motors is a 51:49 JV formed in 2006 between Tata Motors and Marcopolo S.A., one of the largest bus and coach manufacturers globally.
By: PTI | New Delhi | December 17, 2020 11:46:47 am
Badges for the Tata Marcopolo Motors Ltd. liquefied natural gas (LNG) bus are seen during the launch of a new range of electric and hybrid buses at the Tata Motors Ltd. commercial vehicle manufacturing unit in Pune, India, on Wednesday, Jan. 25, 2017. (Photographer: Dhiraj Singh/Bloomberg)
Tata Motors on Thursday said it would buy out its partner’s stake in bus joint venture (JV) firm Tata Marcopolo Motors for around Rs 100 crore. “After a successful venture in India, and as a consequence of its refreshed business strategy, Marcopolo S.A. has decided to exit from the JV and offered to sell its 49 per cent shareholding in the JV to the company,” it said in a regulatory filing. The company will purchase the balance 49 per cent shareholding in Tata Marcopolo Motors (TMML) for a cash consideration of Rs 99.96 crore, it said. Tata Marcopolo Motors is a 51:49 JV formed in 2006, which has manufacturing facilities in Dharwad and Lucknow.
Tata Motors Ltd to acquire JV partner s stake in Tata Marcopolo Motors Limited
Posted On: 2020-12-17 00:14:58 (Time Zone: Arizona, USA)
Tata Marcopolo Motors Limited (TMML or JV), is a 51:49 JV formed in 2006 between the Company and Marcopolo S.A., one of the largest bus and coach manufacturers globally. Since its incorporation, the JV has introduced several innovative design and concepts helping redefine the premium bus body segment in India. The JV has manufacturing facilities in Dharwad and Lucknow where it builds bus bodies on chassis supplied by the Company and marketed by the Company under the Starbus and Starbus Ultra bus brands. After a successful venture in India, and as a consequence of its refreshed business strategy, Marcopolo S.A has decided to exit from the JV and offered to sell its 49% shareholding in the JV to the Company.
Tata Motors to buy 49% stake in bus JV TMML for Rs 100 Cr
The all-cash deal is expected to close by end of February, 2021
Tata Motors on Thursday said that the company will buy the 49 per cent stake held by its partner Tata Marcopolo Motors (TMML) in the bus-making joint venture (JV) for Rs 100 crore. This will bring curtains to the 14-year old partnership and will make way for a smooth exit for the Brazilian company. After a successful venture in India, and as a consequence of its refreshed business strategy, Marcopolo S.A. has decided to exit from the JV and offered to sell its 49 per cent shareholding in the JV, Tata Motors said in its statement to the Bombay Stock Exchange (BSE) without elaborating further.
Tata Motors is buying out its partner’s stake in bus joint venture Tata Marcopolo Motors (TMML) for around Rs 100 crore.
“After a successful venture in India and as a consequence of its refreshed business strategy, Marcopolo S.A. has decided to exit the JV and offered to sell its 49 per cent shareholding in the JV to the company,” Tata Motors said in a communication to the bourses on Thursday.
Consequently, the homegrown auto company and Marcopolo SA have entered into a share purchase agreement where the Tatas will purchase the balance 49 per cent shareholding in TMML for a cash consideration of Rs 99.96 crore, it added.