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.
Key Info
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.
About KAI:
Headquarters– Chennai, TamilNadu
Managing Director– Akira Kato
About CCI:
Headquarters– New Delhi, India
Chairman– Ashok Kumar Gupta