Ashok Leyland to acquire up to 19 pc additional stake in NBFC arm

New Delhi, Mar 18 () Commercial vehicle maker Ashok Leyland on Wednesday said it will acquire up to 19 per cent additional stake in its subsidiary Hinduja Leyland Finance Ltd (HLFL) from existing shareholders for up to Rs 1,200 crore.

The company's board, at a meeting held on Wednesday, has approved to acquire up to 19 per cent additional equity shares in HLFL from the existing shareholders in tranches for a consideration not exceeding Rs 1,200 crore subject to sanctions and permissions of the appropriate authorities, Ashok Leyland said in a regulatory filing.

The agreement to acquire equity shares in HLFL from the existing shareholders will be entered by the company in due course, it added.

"As and when the company completes acquiring shares in tranches and if the said acquisition exceeds two per cent or more of the equity shares of HLFL, the company will inform the stock exchanges, as required," it added.

As of March 31, 2019, revenue of HLFL, a non-banking finance company, stood at Rs 2,560.64 crore.

Ashok Leyland's shares on Wednesday ended 0.16 per cent higher at Rs 64.35 apiece on the BSE. MSS RVK