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Blackstone to sell 17.75% stake in Sonalika for 1,700 crore

Blackstone Group will be selling its 17.75% stake in International Tractors Ltd (ITL), owners of the Sonalika brand, to Japan-based Yanmar Co. Ltd. for around Rs. 1,700 crore. This deal will value International Tractors at Rs. 9,500 crore.

Yanmar, which is the second largest tractor manufacturer in Japan, already owns 12.5% stake in ITL. The deal will thus increase its stake to around 30%. The remaining ITL stakes are owned by the firm's founders, including the company's Chairman Lachhman Das Mittal.

The Blackstone Group had invested around Rs. 520 crore in October 2012 against a 12.5% stake in International Tractors Ltd, which was later raised to 17.75%. Meanwhile, Yanmar had acquired its 12.5% stake in 2005 for an investment of Rs. 200 crore.

Currently, ITL is India's third-largest tractor manufacturer, after Mahindra & Mahindra and TAFE. It has a production plant in Punjab with an annual capacity of 200,000 tractors.

Source: LiveMint

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