Escorts and Kubota Corporation have decided to strengthen their partnership in pursuit of their vision of global leadership in agri machinery. As part of this, Kubota shall increase its equity stake in Escorts by subscribing to new equity shares proposed to be issued by Escorts and shall become joint promoter along with existing promoter of Escorts.
Escorts will issue 93,63,726 equity shares through a preferential issue to Kubota at an issue price of Rs 2000 per equity share aggregating Rs 1872.74 crore. Post allotment, Kubota's investment in Escorts will be 14.99%.
Kubota will also make an open offer to the public shareholders of Escorts to acquire up to 26% of the share capital. Current promoter group (Nanda Group) are not selling any shares of the company. The name of the company shall be changed to Escorts Kubota subject to regulatory approvals.
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