Updated: March 19, 2020 5:08:22 am
Commercial vehicle major Ashok Leyland (ALL) on Wednesday said that the board of directors of the company has given approval to acquire up to 19 per cent additional equity shares in Hinduja Leyland Finance (HLFL), a subsidiary company, from the existing shareholders, in tranches, for a consideration not exceeding Rs 1,200 crore. This move forms part of ALL’s consolidation in the company.
Last month, ALL, along with other investors, had entered into a supplemental share purchase agreement with Everfin Holding to acquire 3,28,14,401 equity shares collectively (constituting 7 per cent in the paid-up share capital of HLFL) at an agreed price of Rs 119 per share for a total consideration of Rs 390.94 crore.
The agreement to acquire the equity shares of HLFL has been spread over a period of nine months in various tranches.
In November 2017, Ashok Leyland had bought out Everfin Holdings’ 4.68 per cent stake in HLFL for a consideration of Rs 225 crore, sources in the know said.
Everfin Holdings, an arm of Everstone Group, has been the investor of HLFL since 2013. For the fiscal year ended March 2019, HLFL had reported a profit of Rs 275.64 crore on a revenue of Rs 2,560.64 crore.
Consequent to Everfin Holdings’ decision to sell part of its stake in HLFL, Ashok Leyland, with other investors, has decided to acquire the shares in five tranches.
Of the 7 per cent holding, 2.11 per cent has already been acquired by other investors. — FE
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