The Indian promoters of Eicher Motors (EML) have bought out Mitsubishi Motor Corporation’s (MMC) shareholding in Eicher Motors.
MMC was part of the original promoters of EML along with Eicher Goodearth Investments (EGIL). EGIL had the right of first refusal in the event MMC wanted to sell its stake in EML. Exercising that right, these shares have been acquired by EML promoters in an off-market deal.
MMC’s entire shareholding of 8,47,430 shares, representing 3.18% of the outstanding shares of EML have been purchased by the Indian promoters of EML. This takes the Indian promoter shareholding in EML from 52.75% to 55.93%.
However, as per definition, the overall promoter share holding in EML remains the same at 55.93% as MMC was one of the promoters of EML and this transaction is an inter-se transaction between the promoters.
