Kubota to Invest Rs.1,872 crore in Escorts

Kubota, a Japanese multinational company has announced an investment of Rs. 1,872 crore in Escorts. Escorts is a tractor and farm equipment maker company. With this investment, the stakes of Kubota will increase to 14.99% from 9.09% in the company. The shares will be allotted at a price of Rs. 2,000 per share.

Kubota can also offer to acquire up to 26% of the stake in the company from a public shareholder. It can also end up with 44.8% stakes in the company in case of a complete subscription in an open offer. This will add indirectly a change in the control of Escorts Finance Ltd and this is the reason why Kubota is planning to make an open offer to the public shareholders of Escorts Finance.