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Ashok Leyland’s stock will be in focus on Wednesday, March 26, ahead of a crucial board meeting scheduled by the company
Ashok Leyland
Ashok Leyland’s stock rose 2% on Wednesday, March 26, ahead of a crucial board meeting scheduled by the company. Additionally, the company has planned an analyst call later in the evening from 5:15 to 5:45 PM, as per an exchange filing on Tuesday.
According to a Moneycontrol report citing sources, Ashok Leyland, India’s second-largest commercial vehicle manufacturer, is reportedly in advanced discussions to acquire the promoter’s stake in SML Isuzu. Negotiations are said to be ongoing between Ashok Leyland and Japan’s Sumitomo Corporation, the current promoter of SML Isuzu, which held a 44% stake in the company as of the December quarter.
SML Isuzu traded at Rs 1606 a piece on March 25 and its market capitalization stood at a little over Rs 2,300 crore. Sumitomo and Isuzu’s combined stakes is valued at roughly Rs 1,350 crore. “The pricing offered by Ashok Leyland may be at 10 – 15% premium to the last three months stock price average of the SML Isuzu,” sources told Moneycontrol.
Earlier this week, CNBC Awaaz reported that Mahindra & Mahindra was also in talks to acquire the entire promoter stake in SML Isuzu. Sources indicated that M&M was considering a valuation of Rs 1,400 to Rs 1,500 per share, which is lower than SML Isuzu’s prevailing market price.
On Tuesday, Ashok Leyland’s shares closed 1.2% lower at Rs 210. The stock has declined by 20% from its recent 52-week high of Rs 264.
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