Tata Motors to buy partner's stake in bus JV for Rs 100 cr
New Delhi: Tata Motors on Thursday said it will buy out its partner's stake in bus joint venture (JV) firm Tata Marcopolo Motors for around Rs 100 crore.
"After a successful venture in India, and as a consequence of its refreshed business strategy, Marcopolo S.A. has decided to exit from the JV and offered to sell its 49 per cent shareholding in the JV to the company," Tata Motors said in a regulatory filing.
The company and Marcopolo S.A. have entered into a share purchase agreement where the company will purchase the balance 49 per cent shareholding in Tata Marcopolo Motors Ltd (TMML) for a cash consideration of Rs 99.96 crore, the company added.
Tata Motors said it has signed an agreement to purchase the balance 49 per cent shareholding from its joint venture partner. Tata Marcopolo Motors is a 51:49 JV formed in 2006 between Tata Motors and Marcopolo S.A, one of the largest bus and coach manufacturers globally. The JV has manufacturing facilities in Dharwad and Lucknow where it builds bus bodies on chassis supplied Tata Motors.