Daimler is to use its divestment in Tata Motors to fund a drive into BRIC countries as well as develop green initiatives.
Daimler said its decision to sell the entire 5.34% stake in Tata for EUR265m (US$361m) was also due to its success in the Indian market.
“This [sale] was done in close co-operation with our partners at Tata,” a Daimler spokesman told just-auto.” Both sides agreed it was no longer necessary to hold the stake.
“The share price was developing quite nicely – all in all it was a good window of opportunity to sell the stake.”
Daimler said it would use the proceeds from its divestment to pursue initiatives in green technology and access to BRIC countries.
The spokesman would not disclose the identity of the buyers apart from noting they were “multiple.”
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By GlobalDataHowever, Reuters, citing data on the Bombay Stock Exchange website, said Tata Sons, the holding entity for Tata Group firms, and Citigroup had acquired 8.65m shares in Tata Motors from Daimler .
Tata Sons bought 4m shares at INR750 each while Citi bought 4.65m at INR752.41 apiece, the report said, noting that Daimler had sold about 25.6m shares at an average INR751.67 each, raising INR19.24bn.
The rest of the shares were bought by various market investors including mutual funds and some overseas investors, a source with knowledge of the transaction told the news agency.
“What people have to disclose as part of their requirements, that is one thing, but we don’t,” the Daimler spokesman told just-auto.
“Tata Sons does not engage on these matters because it is not a listed company,” a Tata spokesman in Mumbai said. “We did not even comment to the Indian media.”