Tata Motors Limited sales share to buy Landrover and Jaguar

To buy Landrover and Jaguar from Ford Motor Co. Ltd.(NYSE:F), India’s largest passenger automobile and commercial vehicle company, Tata Motors Limited (BOM:500570), is collecting funds through selling shares with “differential voting rights” for the first time in India. The company reduced the prices of its “rights offer” by 22% after September 1, 2008. Bloomberg reports:

One share comparable with the currently traded share will be offered for every six held by investors at 340 rupees apiece, the company said. Tata Motors aims to raise 21.86 billion rupees ($492 million) through this offer.

The ‘A’ shares, which will enable the shareholder to vote once for every ten shares is going to cost Rs. 305 each. Tata is looking forward to sell ‘A’ shares worth Rs. 19.61 billion. There are shares with limited voting rights. Shareowners will get 5% more dividends over normal shares in this category.

Tata is also going to sell assets worth Rs. 30 billion. The company plans to raise $600 million through the sales of its overseas shares. In total, Tata Motors is planning to raise $946 million to buy Jaguar and LandRover. Earlier, Tata Motors borrowed about$3 billion in “bridge financing.”

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