*Tata Motors Ltd* is selling its 60% stake in *Telco Construction Equipment Co. Ltd.* to its partner *Hitachi Construction Machinery Co. Ltd* for an undisclosed amount. The deal is likely to be completed in next three months. The estimated value of Tata’s stake in Telco is Rs 1,800 Cr.
The Jamshedpur based company makes backhoe loaders, excavators, wheel loaders and other construction equipment used for infrastructure projects. It’s a market leader for excavators in India. Telcon was set up as a wholly owned subsidiary of Tata Motors in 1999 after the company spun off its construction equipment division. In 2000, Tata Motors divested a 20% stake in the company to Hitachi with the objective of bringing in newer technologies. Subsequently, the Japanese partner doubled its stake to 40% in 2006 for Rs203.55 crore. Telcon ended fiscal 2008-09 with a net profit of Rs84.7 crore on a turnover of Rs2,143.04 crore. Profit slumped 73% and turnover was down 21% in fiscal 2009 as demand for products contracted in a slowing economy in the wake of the global meltdown. -- Regards Hardik Shah -- You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en.
