Tata Technologies, Hitachi JV first on block under Tata Motors’ deleverage plan
MUMBAI: Tata Technologies, Hitachi JV first on block under Tata Motors’ deleverage plan – Tata Technologies Ltd and Tata Hitachi Construction Machinery Company Pvt Ltd are first group businesses being placed on the block for stake sale under Tata Motors’ deleverage plan, which aims to form the corporate debt free in 3 years, three people conscious of the plans told Mint.
“Tata Motors has resumed talks with multiple stakeholders for potential equity stake sale in its software arm and within the Hitachi venture. The intent is to monetize non-core assets and therefore the exercise has begun with these two companies,” said the primary person, requesting anonymity.
Tata Motors (TML) was in talks with Warburg Pincus almost 3 years ago for a possible equity stake sale in Tata Technologies, which was founded as a business unit of TML in 1989. However, the deal was called off later.
“While TML has now called out these two companies first the block, more non-core businesses would be opened for stake sale soon. the corporate is additionally hospitable equity infusion by promoters towards reducing its debt,” said the person.
For reducing its soaring net consolidated debt, which rose from ₹48,000 crores as of 31 March to ₹68,000 crores as of 31 July on account of in-depth cash burn thanks to COVID-19 led disruptions.
“There is nothing fresh to share beyond what was said within the AGM,” a Tata Motors spokesperson said, declining to discuss the matter.
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