On July 10, 2020 The Competition Commission of India(CCI) approved the acquisition of 9.09% equity stake in Escorts Limited(Escorts) by Kubota Corporation(Kubota) and of 40% in Kubota Agricultural Machinery India Private Limited(KAI) by Escorts under Section 31(1) of the Competition Act, 2002,
About the proposed combination
i.As per the proposed combination, Kubota will subscribe to the 1,22,57,688 equity shares(9.09% of the total issued, subscribed and paid-up share capital) of Escorts on a pre-capital reduction and 10 % on a post-capital reduction basis.
ii.Kubota will acquire 40% shares held by Sumitomo Corporation in KAI, which will be acquired by Escorts. After this, Kubota will hold 60% and Escorts will hold 40% in KAI.
i.As per the deal, Escorts will allocate about 1.23 crore equity shares through a preferential issue to Kubato at Rs 850 per share.
ii.The sale of equity will be done from the shares held by Escorts Benefit & Welfare Trust to ensure that the total equity share capital of the company remains unchanged.
Headquarters– Chennai, TamilNadu
Managing Director– Akira Kato
Headquarters– New Delhi, India
Chairman– Ashok Kumar Gupta