Daimler sold its 5.34 percent stake in Tata Motors

Daimler, the luxury car maker said on Tuesday that it has sold its 5.34 percent stake in the Tata Motors. The Daimler Motor company sold its stake to Tata Motors' biggest stake holder Tata Sons and other major investors like City-group for nearly Rs 1,863 crore. According to Daimler, Mercedes Benz (a subsidiary of Daimler in India) is doing quite well in India and the company is ready to capitalise on the growth potential of the Indian auto market without the help of the Tata group.

According to company an equity participation of Daimler in Tatas in not necessary any longer and the move of selling the stake has been taken in full consideration with Tatas and as the relations between both of the companies are excellent, this sell will not affect the relations of both of the companies.

The above deal will increase  Daimler’s pre-tax profit by e265 million (Rs 1,646 crore). Daimler managed to sell 25 million shares in Tata Motors for Rs 751.67 apiece by a series of block deals which ended four-decade old relationship.

On the other hand Tata Sons has bought 4 million shares for the amount of Rs 300 crore. Besides this while Citigroup purchased 4.65 million share for Rs 350 crore. In the Tata groups 38 percent stake, Tata Sons has a 27 percent stake.

Daimler is all set to built up a commercial vehicle facility in Chennai and it is expected that it will roll out commercial trucks from this plant by year 2012 with a new brand name, which is yet to be disclosed. At present, Daimler sell its commercial truck in India named as Actros range of truck. These commercial truck are assembled at Daimlers' Pune facility.