Warburg Pincus Calls Off Tata Tech Investment
Warburg Pincus calls off Tata Technologies investment citing regulatory delays and unsatisfactory performance.
Private equity giant Warburg Pincus has decided to call off its planned $360 million investment in Tata Technologies Ltd., an engineering services and design arm of India’s largest truckmaker Tata Motors Ltd.
The deal has been mutually called off “due to delays in securing regulatory approvals as well as due to the recent performance of the company not meeting internal thresholds because of market challenges”, said Tata Motors in a media statement. The automaker will look at other “strategic options” of selling stake in Tata Technologies, the statement said.
In December, Warburg Pincus had agreed to acquire around 43 percent stake in Tata Technologies. Around 30 percent was to be bought from Tata Motors and another 13 percent from Tata Capital. The deal with the New York-based firm was expected to help Tata Motors cut its total debt, and monetise non-core assets.
Shares of Tata Motors Ltd. had closed 3.12 percent higher, ahead of the announcement, in contrast to the benchmark S&P BSE Sensex that closed 0.9 percent lower.