Tata has just released financial results for last year. Although it sells the bulk of its cars and trucks in India, it is not immune from recent market turbulence and profits stalled last year at around $542m (£274m), very close to last year’s figure.
Jaguar and Land Rover are expected to officially become part of Tata Motors on Monday 2 June, when the nine month sell-off process is finally concluded.
Lawyers for both sides are finalising contractual details. “We can’t confirm anything yet, because there’s still some work to be done, but Monday looks a good bet,” says a source familiar with the sell-off.
Finalising the buyout will mean Jaguar and Land Rover can look towards its extensive future model programmes, including a new £40k two-seater sportscar and XF Coupe for Jaguar, and LRX soft-roader and aluminium Range Rover for Land Rover.
Tata will fund its $2.3bn purchase by raising two large lumps of funds. One is a $1.8bn rights issue –selling new shares in Tata Motors — and the other ‘securities’ for $600m. These will also payback a short-term bridging loan that Tata took out a few months ago to tide it over during the buyout.