Hitachi picks up the stake for Rs.1,159 crore
Tata Motors, Hitachi Construction Machinery Co. Ltd. ( Hitachi ) and Telco Construction Equipment Company Ltd. (Telcon), a 60:40 joint venture company between Tata Motors and Hitachi, on Tuesday signed an agreement under which Tata Motors has sold a further 20 per cent stake in Telcon in favour of Hitachi for a consideration of Rs.1,159 crore. Consequently, Telcon will be owned 60 per cent by Hitachi and 40 per cent by Tata Motors. Standard Chartered Bank and AZB Partners acted as financial and legal advisors, respectively, for the company to this transaction. Telcon is a leading provider of mining, infrastructure, construction and agricultural equipment and services and was set up in 1999 as a wholly owned subsidiary of Tata Motors on the spin-off of the construction equipment business unit of Tata Motors. Subsequently, in 2000 and 2005, Tata Motors inducted Hitachi into Telcon by divesting 20 per cent each of its shareholding, thereby, enabling Telcon to have access to newer technologies and processes.
Carl-Peter Forster new MD
Tata Motors on Tuesday said Carl-Peter Forster had been appointed as Managing Director and Group CEO from April 1. “This is in continuation of the announcement on February 15 of the appointment of Mr. Forster as the Group CEO, with overall responsibility of Tata Motors' operations globally,” the release adds.