Indian promoters buy Mitsubishi stake in Eicher Motors

Indian promoters buy Mitsubishi stake in Eicher Motors

Mumbai: The Indian founders of Eicher Motors Ltd have bought out Mitsubishi Motor Corp’s 3.18% stake in the firm, the company said in a statement on Thursday.

The deal value was not disclosed by the firm. A spokeswoman for Eicher told Reuters the amount was kept confidential under the sale agreement.

Japan-based Mitsubishi has ceased to be a promoter of the company, Eicher Motors’ chief executive officer Siddharth Lal told news channel CNBC TV18.

“The promoters of Eicher Motors Ltd have purchased these shares from there is no more relationship with Mitsubishi and they will no longer be listed as a promoter in Eicher Motors," Lal said.

The off-market transaction takes the Indian founders’ shareholding in Eicher Motors to 55.93%.

Mitsubishi was one of the original founders of Eicher Motors along with Eicher Goodearth Investments Ltd.

Eicher Motors shares, which jumped more than 11% after the announcement, were trading up 5.68% at Rs628.50 in the Mumbai market.