Mahindra's won the Punjab Tractors bid

Mahindra & Mahindra (M&M) has valued Punjab Tractors (PTL) at around Rs 22 billion and agreed to pay Rs 360 per share for a 43.5% stake, reports Economic Times. M&M will shell out a little over Rs 9,510 million in an all-cash deal.

While Actis will gross Rs 6,340 million from the sale of its 29% in Punjab Tractors, the Burman family-promoters of Dabur India-will get around Rs 3,170 million for their 14.5% stake. The final round of bidding came down to M&M, Ashok Leyland and the Chennai-based Tafe, after the Tata group backed out.

Initially, Ashok Leyland was known to have offered Rs 320 per share of PTL, while Tafe and M&M made offers in the range of Rs 330-335 per share. M&M also offered a part-cash part-stock option but finally bagged the deal when it upped its all-cash offer to Rs 360 per share. The company will have to make an open offer to buy an additional 20% in PTL, as per SEBI regulations.