New Delhi: Leading US-based private equity firm Warburg Pincus will acquire a 43 percent stake in Singapore-based Tata Technologies for $360 million (around Rs 2,320 crore).
An affiliate of Warburg Pincus will acquire around 30 percent from Tata Motors and its subsidiary Sheba Properties as well as Tata Capital's entire 13 percent stake, Tata Motors said in a regulatory filing.
Tata Technologies is a subsidiary of Tata Motors.
Following the transaction, Tata Motors and its affiliates will continue to hold a minority interest of 43 percent in Tata Technologies with the remaining ownership being held by management team and other shareholders.
Tata Technologies is a global engineering services and product development IT company which employs more than 8,500 people in 23 countries.
"The partial disinvestment is part of Tata Motors' plan to strategically monetise part of the value created while also inducting valuable partners, together with whom the company can excel in its next phase of growth," Tata Motors Group CFO C Ramakrishnan said.
Warburg Pincus India Managing Director and Co Head, Vishal Mahadevia said, the company is looking forward to back management team at Tata Technologies and leveraging Warburg Pincus' global network to help grow the business.
"This investment is testament to our achievements to date and more importantly of our great potential moving forward," Tata Technologies CEO and MD Warren Harris said.
Tata Technologies provides services for advanced engineering, R&D, and connected IT solutions.
Published Date: Jun 15, 2017 06:22 pm | Updated Date: Jun 15, 2017 06:22 pm