Daimler not to shed stake in Tata Motors
04 Oct 2008
Even as it exits its other automotive investmrnts, German automaker Daimler says it plans to retain its 6.6 per cent in India's largest automobile maker Tata Motors share, valued at around Rs900 crore. Tata Motors had a technology tie-up with Daimler Benz half a century ago for Benz trucks.
Daimler said it expected major growth from components supply to Tata Motors for the Jaguar Land Rover brands, which it had acquired from Ford Motors, even though Tata has not approached Daimler for sourcing components yet.
Daimler is planning to sell its remaining 19.9-per cent Chrysler stake to to private equity firm Cerberus Capital Management, which completed its $7.4-billion acquisition of a 80.1 per cent Chrysler in August 2007 (See: DaimlerChrysler, Cerberus complete Chrysler deal)
As per current valuations, Daimler's stake in Tata Motors is worth nearly Rs 900 crore.
Although Daimler's stake in Tata Motors has declined from 10 per cent to 6.64 per cent, the it dos not lan to revise its stake as a dormant investor.
