The Telegraph
Since 1st March, 1999
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CDC to bid for 23.5% in Punjab Tractors

New Delhi, July 2: The UK-based CDC Capital partners will bid for 23.49 per cent stake in Punjab Tractors (PTL) to be divested by the Punjab government as part of a disinvestment drive, sources said.

CDC is ready to shell out between Rs 250-300 crore to buy the 23.49 per cent, or 1.42 crore shares, in the nation's second-biggest tractor firm. The company is a joint venture firm between the state government and the Swaraj group.

“PTL also owns a 33 per cent stake in Swaraj Mazda and a 29 per cent in Swaraj buying this stake would give them a control of these two companies,” sources said.

Swaraj Mazda makes light trucks and buses in collaboration with Japanese firm Mazda while Swaraj Engine is a joint venture with Kirloskar Oil Engines and makes diesel engines.

CDC managing director (South Asia operations) Donald Peck said: “Our aim is to work with the management of the company and help globalise it.”

PTL, with a annual capacity of 60,000 tractors and a 20 per cent market share, has also received bids from the country's leading tractor maker Mahindra & Mahindra, Escorts and Eicher which are among the domestic firms. Others interested are the local subsidiary of New Holland, a unit of struggling Italian automaker Fiat SpA, and Same Greaves, an Indian-Italian joint venture.

The bids would open in the fourth week of July and the company expects to complete the sale by the middle of August.

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