Shardul Amarchand Mangaldas advises Kubota Corporation, Japan in its proposed acquisition of control of Escorts Limited
November 27, 2021
Shardul Amarchand Mangaldas & Co. advised Kubota Corporation, Japan (Kubota) in its proposed acquisition of control over Escorts Limited to become a joint promoter along with the existing promoters of Escorts Limited. The transaction entailed an acquisition of 6.49% of the post issue total issued, subscribed and paid-up share capital of Escorts Limited by Kubota through preferential allotment along with an open offer for acquisition of up to 37,491,556 fully paid-up equity shares of Escorts Limited (representing 26% of the expanded voting share capital) and an indirect open offer for acquisition of up to 10,465,000 fully paid-up equity shares of Escorts Finance Limited (a listed subsidiary of Escorts Limited) (representing 26% of the expanded voting share capital), from the public shareholders. The deal was valued at USD 1.26 billion. The date of signing was 18 November 2021.
Shardul Shroff, Executive Chairman, provided key strategic inputs and guidance in relation to the transaction. The Transaction Team was led by Rudra Kumar Pandey, Partner and assisted by Amanjot Malhi, Partner; Srinivas Anirudh, Principal Associate; Anshul Asri, Senior Associate; Sanyukta Sowani, Senior Associate; Jyoti Gautam, Consultant; Sanya Bahl, Associate; and Akash Deep Singh, Associate. Various other teams contributed to this deal including Yogesh Chande, Partner and Kanwardeep Kapany, Principal Associate from the Securities Law Team. Prashant Saran, Senior Consultant also provided valuable inputs from securities law perspective. Aparna Mehra, Partner; Rohan Arora, Partner; Kshitij Sharma, Associate; Ritesh Puri, Associate; advised on competition law aspects and Amit Singhania, Partner; Rahul Yadav, Principal Associate; and Nimish Malpani, Senior Associate, advised on tax aspects.
The Due Diligence Team was led by Rudra Kumar Pandey, Partner and assisted by Amanjot Malhi, Partner; Srinivas Anirudh, Principal Associate; Anshul Asri, Senior Associate; Sanyukta Sowani, Senior Associate; Jyoti Gautam, Consultant; Akash Deep Singh, Associate; Shreya Bhatnagar, Associate; Deepti Pandey, Associate; Tanusmita Ghosal, Associate and Rachit Grover, Paralegal and assisted by the following practice teams- Real Estate: Mrinal Kumar, Partner; Shrutikirti Kumar, Partner; Indira Shankar Reddy, Senior Associate; and Arnav Sahni, Associate. Labour & Employment: Pooja Ramchandani, Partner; Suryansh Gupta, Associate and Harshita Arora, Associate. Litigation: Binsy Susan, Partner; Akshay Sharma, Principal Associate and Amogh Srivastava, Associate. Environment: Nawneet Vibhav, Partner. Intellectual Property: Apoorva Murali, Principal Associate; Devika Arora, Associate and Neha Khanduri, Associate.
Mori Hamada and Matsumoto, Japan; Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., Japan, and Deloitte acted as the legal, financial and tax advisors, respectively, to Kubota. DMD Advocates, JM Financial and Transaction Square advised Escorts Limited and the promoters, including Mr. Nikhil Nanda.