Tata Motors has taken control of Iveco Group after completing the initial settlement of its 3.8 billion EUR takeover offer. This brings the Italian commercial vehicle manufacturer into the Indian automotive group.
The offer, made through Tata Motors subsidiary TML CV Holdings, has resulted in the acquisition of 238,157,212 Iveco shares, representing approximately 89.42% of the company’s share capital, excluding treasury shares.
The completion of the initial settlement means Iveco Group is now part of Tata Motors, with changes to its board and corporate governance arrangements taking effect.
Tata Motors acquired the shares at a cash price of 14.40 EUR each, including dividends. The offer was made through its wholly owned subsidiary, TML CV Holdings B.V.
The takeover also brings changes to Iveco Group’s leadership. N Chandrasekaran, chairman of Tata Motors, has become chairperson of Iveco’s board, while Olof Persson remains chief executive officer. Tata executives P B Balaji and Girish Wagh have also joined the board as non-executive directors.
The companies have also restructured Iveco’s board committees and amended its corporate governance arrangements. All outstanding special voting shares have been repurchased, leaving none remaining.
The takeover offer will reopen from 2 to 6 November, giving remaining shareholders another opportunity to sell their shares to Tata Motors. The additional shares accepted during this period will be settled on 13 November.
Further steps to acquire the remaining shares, including a possible compulsory purchase of shares held by minority shareholders, are expected to be announced in due course.
