Kubota Corporation is planning to acquire 10% equity stake in Escorts on a post capital reduction basis in order to integrate and deepen their relationship towards achieving their mutual ambition of global leadership. Upon completion of this transaction, Escorts and Kubota will partner to become a leading player in the Indian market and a hub of product development, manufacturing and sourcing for global markets.
The company will issue and allot 12,257,688 equity shares through a preferential issue to Kubota at an issue price of Rs 850 per equity share, subject to shareholders' and necessary regulatory approvals.
Escorts offer a comprehensive range of tractors with more than 45 variants starting from 25 to 80 HP. The company also manufactures and markets a diverse range of equipments like cranes, loaders, vibratory rollers and forklifts.
