Warburg Pincus is in advanced discussions to buy a stake in the engineering unit of Tata Motors Ltd., the manufacturer of Jaguar sports cars and Land Rover sport utility vehicles, people with knowledge of the matter said.
The private equity firm is in talks to buy a significant minority holding in Tata Technologies Ltd. for about $450 million, according to the people. A deal could be reached as soon as the next few weeks, the people said, asking not to be identified because the information is private.
Tata Technologies provides outsourced design, research and development services to the automotive, aerospace and industrial machinery industries. Tata Motors owns 70.4 percent of the Singapore-headquartered company, according to its annual report.
Selling a stake in the engineering unit would help Tata Motors cut gross debt that stood at 748 billion rupees ($11.2 billion) at the end of December. The company is exploring ways to optimize its capital by monetizing non-core assets and some of its investments, it said in its most recent quarterly report.