MUMBAI • Tata Sons Ltd is buying as much as 20 billion rupees (RM1.4 billion) of Tata Motors Ltd shares, as India’s biggest conglomerate seeks greater control of the Jaguar Land Rover owner, a person with knowledge of the matter said.
Tata Sons is the undisclosed purchaser seeking to buy stock equivalent to 1.7% of the company in a deal launched on Monday, said the person, who asked not to be identified because the details are private.
The investor was offering to purchase Tata Motors shares for as much as 421.56 rupees apiece, according to terms for the deal obtained by Bloomberg.
Tata Motors rose as much as 5% in trading, the biggest intraday gain since July. About 32.35 million shares of the company changed hands in a block trade yesterday morning.
The conglomerate is aiming to boost its ownership over time in five of its largest businesses, including Tata Motors and Tata Steel Ltd, to protect group companies from potential takeover threats, people with knowledge of the matter said in January.
Under Indian regulations, Tata Group can buy as much as a 5% additional stake each financial year without triggering an open offer. — Bloomberg