Tata Motors pays off Jaguar Land Rover debt
TATA Motors has raised £470m to pay off its debts from the purchase of Jaguar Land Rover.
The Indian giant bought JLR, which employs 2,000 people at Halewood, last year.
Today it announced a $750m (£470m) rights issue to pay off the debt it accrued buying JLR.
It said: “Tata Motors intends to use the net proceeds from this offering for repayment of debt incurred in connection with the acquisition of Jaguar Land Rover, the outstanding of which stands at $700m.”
Tata Motors vice-chairman Ravi Kant said: “This is a significant milestone for Tata Motors. This transaction is a re-affirmation of investor confidence in the automotive sector and bears testimony to the trust reposed in the long term outlook and performance of Tata Motors”.
Chief financial officer C. Ramakrishnan said “We are delighted with the outcome. The offering will augment our long term resources, help us de-leverage and provide us the financial flexibility to pursue our strategic goals.”
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