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Tatas to raise $51 m for Daewoo buy
By siliconindia
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Wednesday, 25 February 2004, 20:30 IST
NEW DELHI: Tata Motors will tap foreign banks to source debt worth $51 million for its Daewoo acquisition. This will comprise half of the $102 million package that the Pune-based truck major is forking out for Daewoo Commercial Vehicle Company (DWCV).
Speaking to ET, Tata Motors executive director, finance and corporate affairs, Praveen Kadle said: We are putting money into DWCV as debt and equity. For the debt component, foreign banks will lend to that company on our behalf.
The $102-million debt-equity package covers the entire debt liability as well as share capital of DWCV leaving its new management with a financially clean slate.
We are paying off the entire debt and buying the share capital of DWCV with the $102 million (acquisition package), Mr Kadle said.
It will cover all existing bank loans extended to the company.