Japanese tractor major Kubota eyes majority shareholding in Escorts

Picks up 5.9% more for Rs 1,873 crore

Japanese tractor major Kubota Corp is putting in Rs 1872.74 crore to pick up an additional 5.9 per cent stake in Escorts Ltd, according to a multi-layered deal announced on Thursday. Kubota, which will now hold 14.9 per cent in the Nanda family-owned Escorts, plans to infuse Rs 9400 crore to become a majority shareholder later.

The new entity, that will be run jointly by the Nanda family and Kubota Corp, is aimed at creating a potent force in the farm machinery and agricultural equipment space, the companies said.

At the end of the three-tier deal, Kubota Corporation’s stake will increase