Tata Motors Passenger Vehicles Ltd.

Tata Motors has sold a third of its 60 per cent stake in Telcon to its joint venture partner, Hitachi Construction Machinery Company, for Rs 1,159 crore. In the process, its holding is down to 40 per cent with the Japanese partner accounting for 60 per cent. Standard Chartered Bank and AZB Partners were the financial and legal advisors in this transaction.

Tata Motors has constantly been exploring options to sell its stakes in some arms and reduce its debt from the acquisition of Jaguar Land Rover. The present debt position is around Rs 23,000 crore. Telcon, a major provider of mining, infrastructure, construction and agricultural equipment and services, was set up in 1999 as a wholly-owned arm of Tata Motors.

Subsequently, in 2000 and 2005, Hitachi was roped in and offered 20 per cent each time in the shareholding. Telcon reported a gross turnover of Rs 2,130 crore and a net profit of Rs 85 crore last fiscal.