Germany’s Daimler has been forging new partnerships over the last few months – including tie-ups with Tesla Motors and China’s BYD – but the German automaker will reportedly reduce workload by shedding its stake in India’s Tata Motors.
According to reports out of India, Daimler is planning on selling its long-time stake in Tata Motors. Daimler currently owns a 5.34 percent stake in the Indian automaker, or roughly 25.6 million shares.
Daimler will sell its shares at a 4-7 percent discount compared to current market prices, but still stands to raise about $429 million from the sale. No reason was given for the Daimler’s decision, with both sides declining to comment.
Despite Daimler’s exit from Tata Motors, the Indian automaker is performing above expectations. Tata’s stock price has increased 19 percent since late February, and saw an increase of 0.18 percent on Monday.
References
1. ‘Daimler dumping stake…’ view
