BackVolvo to sell up to $300 million worth shares in Eicher Motors
Share sale through book building to offer shares in price range of Rs14,636 to Rs15,907 per share
Premium(Bloomberg)
Mumbai: Volvo AB, the Swedish truck maker, plans to sell 5% stake in Eicher Motors Ltd. According to the term sheet, a copy of which has been reviewed by Mint, the share sale via book building will offer shares in a price range of 14,636 to 15,907 per share at a 0% to 8% discount of Tuesday’s closing price.
The deal, worth $250 million, will have an upsize option of upto $50 million. At the end of the December 2014 quarter, Volvo’s share in Eicher was at 8.4%.
So far this year, shares of Eicher Motors have gained 5.22% while the BSE Auto Index gained 6.02%. Eicher Motors Ltd fell 3.8% to close at ₹ 15891.30 on Tuesday while the benchmark Sensex rose 0.5% to close at 29,593.73 points. Volvo also has a joint venture with Eicher in India for making heavy duty trucks for the Indian market.
“It’s a sale of Volvo’s portfolio investment in Eicher Motors," said a spokesperson at Eicher Motors, refusing to comment further.
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