The story appears on

Page A14

October 10, 2009

GET this page in PDF

Free for subscribers

View shopping cart

Related News

Home » Business » Auto

Funds raised to pay for purchase

INDIA'S Tata Motors has raised US$750 million from international markets to help pay for its 2008 acquisition of Jaguar and Land Rover from Ford Motor Co, the company said yesterday.

Tata Motors said it's issuing 29.9 million new shares, worth US$375 million, in the form of Global Depository Shares at US$12.54 per share -- a 1.5 percent discount to Thursday's closing price. It is raising another US$375 million through 4 percent coupon convertible notes due in 2014, at US$100,000 per note.

Tata Motors initially wanted to raise funds from international markets to roll over a US$3 billion bridge loan it had taken out to pay for the acquisition of the two money-losing luxury auto brands and which came due in June. But it was forced to postpone the offering because of the global recession.

Now Tata Motors has joined a growing list of Indian companies that have taken advantage of recent market buoyancy to raise funds. So far this year and excluding the Tata Motors offering, Indian firms have raised almost US$17 billion in equity -- about three times what they did during the same period last year, according to Thomson Reuters.

Vice Chairman Ravi Kant called the offering "a reaffirmation of investor confidence in the automotive sector."

Tata Motors, whose growing debt burden has ratings agencies worried, said it would use the new funding to repay part of the US$700 million in debt still outstanding from the US$2.3 billion Jaguar and Land Rover acquisition.


Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend