CDC To Make Open Offer For 20% More Stake In PTL

Mumbai, July 30: | Updated: Jul 31 2003, 05:30am hrs
Common Wealth Development Corporation (CDC) Capital Partners a wholly owned subsidiary of CDC has decided to make an open offer for a further 20 per cent stake in Punjab Tractors Ltd (PTL) at a price of Rs 153 per share.

The open offer follows CDCs successful bid for 23.5 per cent stake in PTL held by Punjab State Industrial Development Corporation (PSIDC) at a price of Rs 153 per share.

CDC in its release has stated that the share purchase agreement to reflect the sale was signed yesterday in Chandigarh.

The open offer for 20 per cent in PTL will cost CDC around Rs 189 crore this will take its total acquisition cost to 408 crore provided the 20 per cent of shareholders tender their share in the open offer. The cost of acquisition of 23.5 per cent in the company was Rs 218.39 crore.

Commenting on the deal CDC director Steven Enderby said: PTLs position as market leader means that it has excellent growth prospects and we are confident that PTL and Swaraj Mazda Ltd will continue to be high performers.

PTL is the second largest tractor manufacturer in India with a market share of around 20 per cent. Additionally, PTLs associate company Swaraj Mazda Ltd, who manufacturers buses and trucks, is well positioned in the rapidly growing light commercial vehicle market.