VCCircle

There was talk of this deal some four months back. Finally, it seems, it's happening. Tractor manufacturer Sonalika Group is set to seal the deal for funding of Rs 300 crore ($66.6 million) from the UK-based private equity fund 3i.

The company sources are however yet to confirm it. 3i will pick up a 10 per cent stake each in two group companies — tractor maker International Tractors (ITL) and utility-vehicle maker International Cars & Motors (ICML). The 10 per cent ITL stake is valued at Rs 200 crore ($44.4 million), and the 10 per cent in ICML holding is worth Rs 100 crore ($22.2 million).

With this deal, 3i would be the third foreign stakeholder in Sonalika, after Citigroup and Yanmar. Sonalika sold a 10 per cent stake in ITL and 20 per cent in ICML to Citigroup recently, which had fecthed Sonalika some Rs 370-400 crore. [Via The Economic Times]

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