The ET report quotes M&M president (farm equipment sector) Anjanikumar Choudhari as saying, “We are always happy to look at opportunities for inorganic growth. If the price is right, we would be interested in any acquisition.” Tafe has refused to comment.
Actis shares today rose 8 per cent to close at Rs 252 on the news that Actis was looking for suitors. The company has a market cap of over Rs 1400 crore ($310 million). The acquirer may have to give a premium for the stake, and that may give Actis almost $120 million for its 29 per cent stake (twice that of its original investment of $60 million). That's an IRR of 33.33 per cent. Actis chief Donald Peck (in the picture) can smile.
Currently, the Burmans and Actis jointly hold around 43 per cent stake, and they are acting in concert. Earlier this year, Actis and the Burmans were successful in ousting Yash Mahajan from the company's saddle as its chairman. The Burmans' nominee PD Narang was appointed as the chairman of the company in the place of Mahajan.PTL used to be the second largest tractor maker after M&M. But last year, TAFE emerged the number two. PTL is currently number four after M&M, TAFE and Escorts, in that order.
The new policy may allow a higher FDI in sectors that do not directly affect the smaller domestic retail companies. They may be sports goods, electronics and building equipment. These sectors may be allowed a higher FDI cap of 51 per cent.
No comments:
Post a Comment