Japanese auto company Mitsubishi sold its entire 3.2 per cent stake in Eicher Motors Limited (EML) to EML’s Indian promoters last week. The value of the 847,430 shares sold by the Japanese company is estimated to be approximately Rs 50.4 crore. Spokespersons of Eicher Motors, however, refused to disclose the exact monetary value of the stake due to a confidentiality agreement between the two parties. The off-market transaction has increased the stake of the Indian founders of Eicher from 52.75 per cent to 55.92 per cent.
Mitsubishi Motors and Eicher had entered a JV in 1982 to manufacture light commercial vehicles. Since 1994, however, Mitsubishi has been only a shareholder in the company. Eicher Motors MD and CEO, Mr Siddharth Lal, told mediapersons that EML had not had a technical working relationship with Mitsubishi for over ten years, and that with the latest transaction, the latter would no longer be listed as a promoter of the company.
