By Anand Krishnamoorthy/Bloomberg
New Delhi: Mahindra & Mahindra Ltd, India’s biggest maker of farm equipment, offered to buy 20% more of Punjab Tractors Ltd to meet the nation’s takeover rules.
Mahindra offered to buy the shares at Rs360 ($8) apiece from public shareholders, according to a statement by the Mumbai-based company. It’s the same price at which Mahindra last week bought a 43.3% stake in the company from Actis Capital LLP and the Burman family.
Buying Punjab Tractors gives Mahindra, the world’s fourth-largest tractor maker, more access in northern states such as Punjab and Haryana and technology for making larger farm machines. Mahindra expects tractor sales to grow in a nation where some 600 million people depend on farming for a living.
The offer is to buy 12.15 million shares of Punjab Tractors starting 3 May and ending 22 May, Mahindra said.
Mahindra also made an offer to buy 2.48 million shares of Swaraj Engines Ltd, a unit of Punjab Tractors, at Rs151 apiece.