Tata Motors abandons offering of Rs. 30 billion convertible preferreds

By Jennifer Chiou

New York, Aug. 20 - Tata Motors Ltd. will not go forward with its planned offering of Rs. 30 billion of 0.5% five-year convertible preferred shares, according to a 6-K filing with the Securities and Exchange Commission.

Instead, the company has proposed to raise the required resources by monetizing a part of its investments through a phased divestment of certain investments at prevailing market prices over the next six to eight months, the board said at a meeting on Wednesday.

Tata Motors said that the funds released from the future divestments will form part of the resources to be raised for repaying the bridging loan taken for the Jaguar-Land Rover acquisition.

The convertible preferreds would have been convertible into class A shares at any time after three years, but before five years from the date of allotment.

Based in Mumbai, India, Tata Motors is an auto manufacturing company.

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