New Delhi: According to reports circulating in the market, Escorts may sell its share to the Japanese company Kubota. Initial talks with Kubota are on to buy the stake. According to information from sources, Escorts Treasury may sell shares to Kubota.
Kubota has an eye on the tractor and machinery market. Keeping this in mind, Kubota can buy 20-25 per cent stake in Escorts in several stages. The deal may be at a 20-25 percent premium to the current price.
According to sources, this deal can be done in 2-3 steps. The first minority stake will be sold, which may be around 9-10 per cent. More parts will be sold in the next stages.
The price of the deal is not yet decided but there are reports that the deal can be in the range of 1100 to 1150 rupees. It is estimated that this whole deal can be around 4 to 4.5 thousand crores rupees. The deal is expected to be announced in the next 2-3 weeks. But from the escort it has been said that the news of selling the part is just a rumor.
