May 30, 2002 | 1558 IST
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Money > PTI > Report May 30, 2002 | 1558 IST |
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Suzuki Motor Corp gains control of MarutiShahid K Abbas in New Delhi With Suzuki Motor Corporation chairman and CEO Osamu Suzuki presenting a cheque of Rs 10 billion to Suresh Prabhu, Minister for Power and Minister-in-charge of Heavy Industries, the modalities for acquiring controlling stake in MUL was completed.
Assuring that one new model would be launched every year, Suzuki informed that even with a change in management, MUL would "remain Indian" and Jagdish Khattar would continue to be it's managing director. The payment of 'control premium' is the first step in the convoluted process of privatising the automaker, which holds 59 per cent market share. Suzuki paid Rs 4 billion to buy 1.2 million newly issued Maruti shares for Rs 3,280 per share, that would take its shareholding to 54.2 per cent and dilute the government's holding to 45.54 per cent from the present 49.7 per cent. In the second step to divestment, the government would offload a 20 per cent stake through an initial public offering of shares this fiscal to exit the venture entirely by March 2004. Speaking at the occasion Suresh Prabhu said, "For Suzuki it would be a greater opportunity to invest more money in India." Minister for Divestment Arun Shorie said, " There are many virtues to this agreement that would benefit Suzuki, Maruti and the Government of India." Shourie added that Maruti's performance under the new management would go a long way to prove whether government's decision to divest Maruti was correct or not. "We are looking forward to your vigorous growth as it is important for (our) privatisation and reform process," Shourie said. (With additional inputs from PTI) ALSO READ:
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"That Suzuki could participate in the government's dream to 'motorise' Indian economy is a matter of great personal satisfaction to me," said Osamu Suzuki, in his speech delivered in Japanese, at a function in New Delhi on Thursday.