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Tata Motors eyes more buys
June 10, 2008 15:33 IST
Leading automaker Tata Motors [Get Quote] on Tuesday said it is looking at further acquisition opportunities and strategic alliances in India and abroad and is seeking to raise $1billion in debt or equity from overseas market.
Tata Motors, which completed acquisition of UK luxury brands Jaguar and Land Rover for $2.3 billion earlier this month, is part of Ratan Tata-led domestic conglomerate that has been engaged in a number of high-profile overseas takeover deals such as that of Anglo-Dutch steelmaker Corus.
"The company has major growth plans for expanding its product range and presence in the domestic and global markets in commercial and passenger vehicles, including strategic alliances and acquisition opportunities," Tata Motors said in a notice sent to its shareholders seeking their approval on various issues such as fund raising plans.
The company is seeking the shareholders' consent for raising up to one billion dollars through issue of Foreign Currency Convertible Bonds or equity shares in the international market, the circular said.
Besides, it has also sought shareholders' nod for raising the company's borrowing limit to Rs 20,000 crore (about $5 billion). As part of its long term funding plans, it would raise Rs 7,200 crore through three simultaneous but separate rights issues to part-finance its $2.3 billion buyout of British luxury brands Jaguar and Land Rover.
The shareholders nod have also been sought to raise $500-600 million (Rs 2,700 crore) in international market, which would be out of the approval sought for $1billion.
Tata Motors said it would continue to pursue growth plans in passenger and commercial vehicle segments through measures such as launch of new models and investment in manufacturing facilities and technology.