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International Tractors Ltd (ITL), known for its Sonalika brand of tractors, is in talks with private equity investors for diluting a further 10 per cent stake, reports The Hindu Business Line. The company is believed to be in talks with three or four firms inlcuding Barclays, the report says. The tractor-maker had earlier received funding from Citigroup and 3i, who collectively own about 32 per cent. In October 2005, Japanese tractor maker Yanmar had taken about 12 per cent stake in the company. The transaction is expected to be completed in a month's time. The company is going in for anIPO next year, and there will not be any further dilution before it.

However, another group company International Cars and Motors Ltd is also in talks to offload about 10 per cent stake to a strategic investor. Currently private equity firms hold about 30 per cent stake in ICML. The company is believed to be in talks with foreign automotive firms for a strategic partnership.

Go to article in The Hindu Business Line.

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3i To Invest $66.66 Million In Tractor Maker Sonalika Group