Japan's Kubota Corp to acquire 10% stake in Escorts for Rs 1,042 crore

Following the deal, Kubota will have right to nominate two non-executive board members on the board of Escorts

Kubota Corp, a Japanese global tractor and machinery manufacturer, will acquire 10 per cent equity stake in Escorts as the two companies aim to achieve global leadership by partnering in product development, manufacturing and sourcing, Escorts said in a notification to the exchanges.
 
Escorts will issue and allot over 12.2 million equity shares through a preferential issue to Kubota at Rs 850 apiece for Rs 1,042 crore, according to its exchange filing. That’s a 48.21 percent premium over Thursday’s share price. Escorts will reduce an equal number of shares held by Escorts Benefit and Welfare Trust to keep the