|Monday, 08-Mar-2021 23:07:55 CET|
Editor/Photographer : Mark Charles
May 28 2008
rights issue to fund Jaguar buy
Tata Motors has said it would raise up to US$1.7bn through three simultaneous rights issues of various securities to help fund its purchase of the Jaguar and Land_Rover brands, which it expects to close by June.
According to Reuters, Tata said it would then raise $500-$600 million by way of issuing securities in foreign markets, as previously planned, and was considering various options including the Tokyo Exchange.
The funds would be mainly used for the $2.3 billion purchase of the Jaguar and Land Rover brands from Ford, which is being done through a wholly owned UK subsidiary, the report added.
"Though the initial acquisition cost will be financed through bridging loans provided by a syndicate of banks, these loans would be fully repaid through the above-mentioned capital raising schemes," India's top vehicle maker said.
The three rights issues comprise equity shares, "A" shares and convertible preference shares, it said.
Tata Motors has previously announced plans to raise $4 billion for its local and overseas plans, Reuters said.
On Wednesday it said it would spend about INR100bn to expand manufacturing capacities and develop more than 100 new products and variants for an increasingly competitive market.
It will also continue to look at acquisitions and strategic alliances for growth in the local and overseas markets, it said.
Tata , which has manufacturing and distribution ventures with Fiat, also said it was in discussions with the Italian automaker on deals with truck maker Iveco on various options, the news agency added.
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