Daimler divesting $429 million worth of shares in Tata Motors: Sources
08 Mar 2010
German carmaker Daimler is divesting $429 million worth of shares in Tata Motors at a discount of up to 7 per cent of the stock's Monday closing price, according to sources familiar with the matter.
The company is offering 25.6 million shares in Tata Motors at Rs737.4 to 761.3 each, which works out to a discount of 4 to 7 per cent below the Rs796.75 below Monday closing prices and represents a 5.34-per cent stake in the firm.
The stake sale is being handled by Citigroup.
Daimler has a 5.34-per cent stake in Tata Motors' ordinary shares and 4.71-per cent on a fully diluted basis. According to earlier media reports the German carmaker was looking to exit its long-held stake in Tata Motors.
Tata Motors stock has surged 19 per cent since 26 February on the company's reporting a consolidated net profit for the second straight quarter with sales from its Jaguar and Land Rover units picking up.
Tata Motors shares were up 0.18 per cent on Monday prior to the reports of the share sale.
The sale comes on an increase of more than six times after the stock plumbed a record low of Rs126.20 in March 2009. Over the 12 months ended March 2009, Tata Motors suffered its first loss in at least seven years.