Tata Motors still considering to offload Tata Technologies

/ November 28, 2018/ India, M&A (large, with revenues above $50m), Tata Technologies

In an interview published on LinkedIn, Warren Harris, the CEO of Tata Technologies (TTL) confirmed that its parent company, Tata Motors, is looking to sell its stake in TTL. Tata Motors has a 72% stake in TTL and is considering if it should sell parts of it or the full stake.

Mr. Harris did not provide more details. However, his interview confirms that Tata Motors still wants to offload TTL, after the canceled sale of a 43% stake to PE firm Warburg Pincus in February 2018. At the time, Tata Motors had indicated that the cancellation resulted from TTL missing its FY18 internal financial objectives.

The performance in FY19 seems to have improved very significantly. TTL is not a listed company but shares some financial metrics. In the first two quarters of FY19, revenues were up by  ~12.5%, and its EBITDA level seems back to normal, to approximately a 19% margin. This is good news.

Tata Motors will hopefully make a decision soon: the sale process must have been going on for 18 months or so and must be disruptive to TTL’s employees.



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