Tata Motors divests 20 pc stake in Telcon

MUMBAI: Tata Motors, Hitachi Construction Machinery Co. Ltd. (Hitachi) and Telco Construction Equipment Company Limited (Telcon), a 60:40 joint venture company between Tata Motors and Hitachi, today signed an agreement under which Tata Motors has sold a further 20% stake in Telcon in favour of Hitachi for a consideration of Rs.1159 crores. Consequently Telcon will be owned 60% by Hitachi and 40% by Tata Motors. Standard Chartered Bank and AZB Partners acted as Financial and Legal Advisors respectively for the company to this transaction. About Telcon: Telcon, India’s leading provider of mining, infrastructure, construction and agricultural equipment and services, was set up in 1999 as a wholly owned subsidiary of Tata Motors on the spin-off of the Construction Equipment Business Unit of Tata Motors. Subsequently, in 2000 and 2005, Tata Motors inducted Hitachi into Telcon by divesting 20% each of its shareholding thereby enabling Telcon to have access to newer technologies and processes. Telcon has manufacturing facilities at Jamshedpur, Dharwad and Kharagpur, over 200 sales, service and customer support offices and an extensive dealership network across India. Its exports operation includes countries in Asia and Africa.