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 Engines...so 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.