Tata Sons is looking to protect JLR from a potential takeover by purchasing as much as 20 billion rupees ($312 million) of Tata Motors shares.
The stock that Tata Sons is looking to buy is equivalent to 1.7% of the company, said a person with knowledge of the matter. Tata Group controlled 34.7% of of JLR at the end of June, including shares held through Tata Sons, reports Autonews.
India’s biggest conglomerate is looking to boost its ownership over time in five of its largest businesses, which includes not just Tata Motors, but also Tata Steel.
One of their main goals is to protect group companies from potential takeover threats, and Jaguar Land Rover would make for a solid candidate given their recent resurgence.
Tata Motors went up by 5% in Tuesday trading, marking the biggest intraday gain since July this year. Moving forward, Tata Group will be able to buy as much as a 5% additional stake every financial year, without triggering an open offer.
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