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Bloomberg
Tata Motors, owner of Jaguar Land Rover, has restarted talks on the sale of a stake in its engineering unit just months after a deal with Warburg Pincus was called off, people with knowledge of the matter said.
The carmaker has started preliminary discussions with a private equity firm that expressed interest in buying a stake in Singapore-headquartered Tata Technologies Ltd., according to the people, who asked not to be identified because the information is private. Tata Motors plans to use proceeds from the sale on capital expenditures for its domestic automotive business, one of the people said.
Warburg Pincus agreed to buy a 43 percent stake in Tata Technologies for about $360 million. It was planning to buy about 30 percent of the business from Tata Motors, as well as the entire 13 percent holding owned by Tata Capital Ltd., according to a statement at the time.
The deal was scrapped due to delays securing regulatory approvals and a decline in Tata Technologies’s business performance, the Indian company said. Any sale would help Tata Motors reduce its debt which has risen to $12.9 billion at the end of March, from 786.3 billion rupees a year earlier, according to Bloomberg data.