CDC Capital accorded right to acquire stake in Punjab Tractors

Our Banking Bureau
26 July 2003

New Delhi: CDC Capital Partners (CDC), a UK-based venture capital firm, has been accorded the right for acquiring the Punjab state government''s 23.5-per cent stake in Punjab Tractors Ltd.

Officials of the Punjab government''s committee on disinvestment ministry said CDC was the lone bidder and hence was offered to bid at Rs 153 per share for the 23.5-per cent shareholding in Punjab Tractors.

The sale was approved at a discount, as compared with Friday''s closing price of Rs 158.40 on the Bombay Stock Exchange. The sale will bring in Rs 218 crore for the Punjab government.

CDC will now have to get a clearance from the Foreign Investment Promotion Board (FIPB) for the acquisition.

CDC had indicated earlier that it would aim to work with the management of Punjab Tractors and help globalise the company.