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Japan's Kubota to increase its stake in Escorts for Rs1873cr

Escorts will issue 9,363,726 equity shares through a preferential issue to Kubota at an issue price of Rs2000 per equity shares aggregating to Rs1872.74cr.

November 22, 2021 12:18 IST | India Infoline News Service
Escorts Limited and Kubota Corporation, a global leader in tractor and machinery, have decided to strengthen their partnership in pursuit of their vision of globsal leadership in Agri Machinery.

As part of this, Kubota Corporation shall its equity stake in Escorts by subscribing to new equity shares proposed to be issued by Escorts and shall become a joint promoter along with exisiting promoter of Escorts.

This transition shall pave the way for Escorts and Kubota  to seamlessly integrate their respective strengths to become a formidable global force in the farm equipment sector.

Escorts will issue 9,363,726 equity shares through a preferential issue to Kubota at an issue price of Rs2000 per equity shares aggregating to Rs1872.74cr. Post preferential allotment, Kubota's investment in Escorts will be 14.99%.

Kubota will also make an Open Offer to the public shareholders of Escorts to acquire upto 26% of the Share  Capital in accordance with Sebi Regulations.

After completing the transaction, Kubota Agricultural Machinery India and Escorts Kubota India are to be merged with Escorts.

On Sensex, at around 12:21 PM, Escorts was trading at Rs1,771.90 apiece down by Rs31 or 1.72%.

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