“The fourth-generation at the Nanda family is absolutely committed to Escorts,” Nikhil Nanda, chairman and managing director of Escorts said in an interview to Economic Times, soon after announcing Japanese tractor maker Kubota as a joint promoter of the company along with the Nanda family.
Nanda reiterated: "I want to categorically say that the family has no intention whatsoever (to sell)".
On November 18, Escorts said Kubota Corporation will acquire an additional 5.9 per cent stake in it for Rs 1,872.74 crore, taking the total holding to 14.99 per cent and becoming a joint promoter in the Indian firm.
Kubota had 9.09 per cent in Escorts and post the preferential allotment, its stake in the Indian partner will increase to 14.99 per cent.
''Kubota will also make an open offer to the public shareholders of Escorts to acquire up to 26 per cent of the share capital in accordance with SEBI Regulations,'' the statement said.