SAIC's MG to bring in JSW and other local investors in India

JSW Ventures plans to buy a 35% stake in MG Motor India for Rs 3,580 crore.

China-based SAIC Motor Corp Ltd. has announced that it will bring in local investors in India. As part of this strategy, JSW Ventures plans to buy a 35% stake in MG Motor India for Rs 3,580 crore.

According to SAIC, InfoEdge India Fund will buy an 8% stake in the company as well. A dealer trust will take a 3% stake, while an employee stock ownership plan will control a 5% stake.

"As MG Motor India aims to continue to increase MG brand's market share in India and effectively prevent operating risks, the unit plans to introduce local Indian investors to create more favourable conditions for sustainable and healthy development," SAIC said in a statement.

The move comes as the government of India has sought to restrict investments from Chinese companies amid geopolitical and trade tensions. 

Source: Reuters