Hoshiarpur-based International Tractors Ltd (ITL) is all set to challenge the Mahindras for the acquisition of assets of Romanian tractor company Tractorul and is gearing up to make a bid for the company.
?Yes, we are looking at Tractorul and are working on plans to make a move for it,? ITL chairman LD Mittal told FE. ITL, in which stakes are held by Citigroup, 3i, JM Financial and Japan?s Yanmar, is believed to be actively working on its plan for Tractorul and could send bids shortly.
Tractorul, that gives its acquirer a foothold in the European Union market, had been put on the block by the Romanian government and Mahindras was among the front-runners. However, an unresolved debt liability of euro 180 million led to the collapse of a possible deal and the company was later auctioned off and bought by a local entity Flavius Invest for about Euro 92 million.
However, the new owner is now believed to be selling the assets, comprising the tractor- manufacturing factory, casting and forging module and independent assets, independently.
Mahindra has said that it has been approached for the sale and it is interested in going ahead. Mittal said ITL, manufacturers of the ?Sonalika? brand of tractors, was actively looking at markets like Russia and Italy for acquisitions in tractor and component sphere, apart from opening newer export markets like Canada and Australia. The company is slated for an IPO early next year through which it plans to raise about Rs 800 crore to fund expansion and acqusitions, Mittal said.