Escorts Kubota Limited · NSE:ESCORTS
Escorts Kubota — Escorts — Merger or Acquisition (March 2020)
13 slides from Escorts Kubota's merger presentation, Mar 20, 2020
Slide 1: Regulation 30 cover letter to stock exchanges
c ESCORTS March 20, 2020 BSE Limited National Stock Exchange of Delhi Stock Exchange Phiroze Jeejeebhoy Towers, India Limited Limited Dalal Street, Exchange Plaza, DSE House, 3/1, Mumbai - 400 051 Bandra Kurla Complex, Asaf Ali Road, Bandra East, New Delhi -110 002 Mumbai-400 051 BSE-500495 NSE - ES
Slide 2: Deepening existing relationship through Strategic Investment
Deepening existing relationship through Strategic Investment Investor Update 20 March 2020 1
Slide 3: Key Transaction Highlights
Key Transaction Highlights Escorts Ltd (Escorts) & Kubota Corporation (Kubota) further deepen their existing relationship through a Strategic Investment by Kubota in Escorts Primary Infusion • Kubota will invest in Escorts through a Preferential Issue of 12,257,688 equity shares (subject to receipt
Slide 4: 3
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Slide 5: Escorts-Kubota: Mutually Beneficial Partnership
Escorts-Kubota: Mutually Beneficial Partnership Key Benefits to Escorts Ltd. Key Benefits to Kubota Leveraging R&D strengths of Kubota to offer cutting-edge products to domestic & export markets Direct Entry to High Growth Indian Market Enhancing production systems excellence Assured supply
Slide 6: Escorts-Kubota Partnership – A win-win Collaboration
Escorts-Kubota Partnership – A win-win Collaboration A win-win Collaboration to achieve Global Aspirations! Integrate product technology, production systems excellence, sales & distribution strengths alongside component sourcing and advanced supply chain Create differentiated product lines throu
Slide 7: Value Enhancing Partnership across Key Stakeholders
Value Enhancing Partnership across Key Stakeholders Emerging Shareholding Pattern of Escorts Ltd. – No Change in Share A win-win proposition for Key Stakeholders Capital base Shareholding % • Positive Impact Category Comments Dealer • Would be beneficial to them Post Preferential Post Treasury Partn
Slide 8: Acquisition of 40% stake by Escorts Ltd. in KAI
Acquisition of 40% stake by Escorts Ltd. in KAI KUBOTA AGRICULTURAL Acquire 40% stake MACHINERY INDIA PVT. LTD (KAI) • Escorts Ltd. to acquire 40% stake in KAI from Kubota for a consideration of Rs. 900 million in an all cash deal Key Highlights • KAI is the marketing and sales venture of Kubota in
Slide 9: Manufacturing JV with Kubota - EKI to Continue as Planned
Manufacturing JV with Kubota - EKI to Continue as Planned Farmtrac (FT) & Powertrac(PT) Brown Field JV in Faridabad, Haryana Sales through Escorts Channel 60% Will do Contract Manufacturing for Customer Customer and Product Combined Initial Total Investment of INR (₹.) Sales through 300 Crores Kubot
Slide 10: Resulting Relevant Structure
Resulting Relevant Structure Promoter & Promoter Group DIIs/FPIs/ Kubota Corp (Public) (Including Trust*) Public Others 30.25% 10.0% 59.75% 40% 40% Sales and Manufacturing Marketing JV JV Kubota Agricultural Escorts Kubota India Pvt. Ltd Machinery India Pvt. Ltd (KAI) (“EKI”) 60% 60% * Escorts Benef
Slide 11: Speaking on occasion
Speaking on occasion Nikhil Nanda, Chairman and Managing Director, Escorts Ltd., said, “At Escorts, we believe in strategic global partnership with an objective to address global farm mechanization needs. We are pleased to partner with Kubota to offer farmers with innovative solutions and thereby ma
Slide 12: About the Companies
About the Companies About Kubota Corporation About Escorts Limited • Established in 1890 • Established in 1944 • Kubota Corporation (株式会社クボタ Kabushiki- • Escorts Limited is among India's leading engineering kaisha Kubota) is a global manufacturing company, conglomerates, operating in the high-growth
Slide 13: Safe Harbor
Safe Harbor Certain statements in this document include forward-looking comments and information concerning the company’s plans and projections for the future, including estimates and assumptions with respect to economic, political, technological, weather, market acceptance and other factors that im