Tata Sons Ltd, the holding company for the Tata conglomerate, plans to buy out Tata steel’s stake in Tata Motors around June 23, according to a regulatory filing issued by the company on Saturday.
According to the filing, Tata Sons will purchase 83.6 million shares in Tata Motors in an effort to restructure its investment portfolio. The purchase will be completed on or at the prevailing price of the stock on the date of the planned acquisition.
The move by the conglomerate represents Tata Sons plan to reduce cross holdings among its subsidiary group companies. At the end of March, Tata Sons owned 28.71 percent of Tata Motors Ltd. and 29.5 percent of Tata Steel Ltd. Tata Steel owns a 2.9 percent stake in Tata Motors. Tata Motors owns 0.46 percent stake in Tata Steel.