M&M open offer for PTL, Swaraj Engines delayed

Utility vehicle firm Mahindra & Mahindra has deferred its plan to launch open offers for buying 20 per cent stake each in Punjab Tractors and Swaraj Engines.

The timelines for the two separate open offers, which were slated to begin today and close on May 22, would have to be revised as the 'Letter of Offer' was being finalised, the manager to the offer Kotak Mahindra Capital Company said.

A public announcement containing the revised timeline for the open offers would be issued later, it informed the Bombay Stock Exchange.

M&M, which proposed to carry out the transactions along with its subsidiary Mahindra Holdings and Finance, had offered to buy 1.21 crore PTL shares at Rs 360 a share.

Assuming full subscription, M&M would have 63.3 per cent control of the company as it has already agreed to buy 43.3 per cent stake in PTL from private equity firm Actis and Mohit Burman. Actis and Burman have per cent and 14.3 per cent stake in PTL respectively.

The schedule for M&M's open offer to buy 20 per cent stake, representing 24.83 lakh shares in Swaraj Engines at Rs 151 per share, has also been revised.

Swaraj Engines is a joint venture between PTL and Kirloskar Oil Engines.If fully subscribed, the open offer would cost M&M nearly Rs 37.49 crore.