The Modi brothers, after their successful open offer which mopped up the targeted 35 per cent shares in Modi Rubber Ltd, is now planning to set the ball rolling in inducting a foreign partner into their tyre business.
As the largest shareholders, the Modis, according to sources, now plan to hive off the tyre business of Modi Rubber into a fully-owned subsidiary of the company and offer a controlling stake to an overseas tyre major. The Modis reportedly expect the sale of the controlling stake to fetch Modi Rubber at least $20 million.
The Modis are planning to use the subsidiary route to induct a foreign partner instead of getting the overseas company to invest directly in Modi Rubber as it has a number of investments in other Modi companies.
As per the company
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