Escorts to change its name to Escorts Kubota
- Kubota has increased its equity stake in Escorts to 44. 8% by subscribing to new equity shares and through an open offer
Tractor maker Escorts on Thursday said the company has received requisite approvals for the name change of the company from "Escorts Limited" to "Escorts Kubota Limited" with effect from June 9, 2022.
The name change comes in the wake of Japan's Kubota Corporation increasing its stake in Escorts to 44.8% by subscribing to new equity shares and through an open offer to the public shareholders of Escorts.
Kubota has also become a joint promoter of the company along with existing promoters, the Nanda family, whose shareholding in the company remains unchanged. Nikhil Nanda continues to be the Chairman and Managing Director (CMD) of the company.
"Our partnership with Kubota in Escorts Kubota Ltd has been welcomed by all our stakeholders and investors. Consequently, the process was completed smoothly. We are now well poised at a very interesting time in global history to contribute at much higher levels to India and the world's quest for food security, sustainable agriculture and smart agriculture," Nikhil Nanda said in the release.
Kubota President and Representative Director Yuichi Kitao noted: "We are very pleased to partner with Escorts Kubota Ltd at a time when we can combine our strengths to provide advanced farm mechanisation solutions to address global food security & enhanced farm productivity needs".
In November last year, Japan's Kubota Corporation announced that Kubota and Escorts Limited (EL) have reached an agreement under which Kubota will increase its shareholding in EL by March 31, 2022 by means of subscription to third-party preferential primary share allotment and open offer bid.
Escorts will issue 93,63,726 equity shares of face value of ₹10 each at a price of ₹2,000 per equity share to Kubota on preferential basis. Post completion of the open offer and issue becoming effective, Kubota will become a joint promoter of the company along with the existing promoters, the companies had said.
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First Published:10 Jun 2022, 07:38 AM IST
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