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Escorts stocks near record highs as draft letter of Kubota's open offer gets released, tendering period set from Jan 11-24

Morgan Stanley India Company Private Limited, the manager of the Open Offer, has on December 03 as scheduled, released the draft letter for the open offer to stock exchanges.

December 03, 2021 10:50 IST | India Infoline News Service
Daily Market Strategy, DMS
Escorts stock was trading on a positive note and near their record levels during Friday's trading session after the draft letter of open offer where Japan's Kubota Corporation is set to acquire stakes worth nearly Rs7,500cr in the company.

Morgan Stanley India Company Private Limited, the manager of the Open Offer, has on December 03 as scheduled, released the draft letter for the open offer to stock exchanges.

The open offer size comprises that Kubota will acquire 37,491,556 Equity Shares representing 26% of the Expanded Voting Share Capital, at Rs2,000 per Offer Share aggregating to a total consideration of approximately Rs7,498.31cr.

Notably, Kubota is also in a share purchase agreement with Escorts existing promoters namely Nikhil Nanda; Shweta Nanda; Navya Naveli Nanda; Agastya Nanda; AAA Portfolios Private Limited; Big Apple Clothing Private Limited; Har Parshad and Company Private Limited; and Escorts Benefit and Welfare Trust. Under this agreement, Kubota plans to acquire 9,363,726 Equity Shares representing 6.49% of the Expanded Voting Share Capital at Rs2,000 per share in Escorts aggregating to Rs1,872.75cr.

Under the draft letter, the tendering period of the Offer is set to commence from January 11, 2022, and will close on January 24, 2022.

At around 10.46 am, Escorts was trading at Rs1861.35 per piece up Rs12.85  or 0.7% on Sensex. The stock has touched an intraday high of Rs1869.75 per piece.

The stock was near the 52-week high of Rs1,888.80 per piece on Sensex.

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