Tractor and Machinery majors- Escorts Limited and Kubota Corporation have decided to strengthen their partnership and Kubota Corporation has increased its equity stake in Escorts by subscribing to new equity shares proposed to be issued by Escorts. The partnership with Kubota will enable Escorts to have access to global technologies and Kubota's research & development facilities. Escorts will issue 9,363,726 equity shares through a preferential issue to Kubota at an issue price of Rs. 2,000 per equity share aggregating Rs. 1,872.74 crore.
Nikhil Nanda, CMD - Escorts Limited said " This will enable both companies to enhance the value they have created by leveraging each other's strengths - be it in technology, market access, manufacturing processes or engineering excellence. With this Escorts is positioned to become an institution that will serve Indian and global farmers for decades and centuries. While Escorts is known for its stronger India presence with proven strengths in frugal engineering and manufacturing, Kubota brings world-class processes and global reach and expertise.
Kubota will also make an open offer to the public shareholders of Escorts to acquire up to 26 per cent of the share capital.
Yuichi Kitao, President and Representative Director - Kubota Japan said, " The combined entity and the larger collaboration will provide advanced farm mechanisation solutions to address global food security & enhanced farm productivity. We are extremely proud and excited to unite for the future as a One Company"
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. Moreover, the joint venture is said to be one of the largest Indo-Japan agriculture collaboration to attain global leadership in Farm Equipment Sector and Escorts will be the exclusive vehicle for manufacture and seller of certain products in India and for sourcing from India.
