COMPANY PROFILE

• COMPANY NAME : TATA MOTORS

• ESTABLISHED : 1945

• REVENUE : $20 million

• PRODUCT : Commercial vehicle in

each segment
 HISTORY OF JAGUAR

•1922 - Founded in Blackpool as Swallow

Sidecar company.

•1984 - Floated off as a separate co in the stock

market.

•1990- Taken over by Ford.

 ABOUT LAND ROVER

• 1948: Land Rover is designed by the

Rover Car co.
• 1994: Rover Group is taken over by
BMW
• 2000: Sold to Ford for £1.8 billion
• Known for superior off-road performance
• Used by military for projects and missions
ACQUISITION
 OBJECTIVE

• Opportunity to participate in fast growing auto

segments.
• Increased business diversity across markets and
products.
• Jaguar offers a range of "performance/luxury ”
vehicles.
• Benefits from component sourcing, design
• services and low cost engineering.
 PROCESS OF DEAL

• 12/06/2007- Announcement from Ford that it plans to

sell Land Rover and Jaguar.
• August 2007 - Major bidders are identified.
• India’s Tata Motors and M&M arrive as top bidders
($ 2.05b & $ 1.9b).
• 03/01/2008 – Ford announces Tata as the preferred
bidders.
• 26/03/2008 - Ford agreed to sell their Jaguar Land Rover
operations to Tata Motors.
PROFIT AND LOSS ACCOUNT
 TML AND JLR LEVERAGE AND
VALUTION RATIO
Leverage increases but coverage ratios reasonable

• Debt/Equity of TM would increase to 2.5 from 1

• EBITDA/Interest remains at 5.0

 IMPACT ON WEALTH OF SHARE
HOLDER
• PV OF TM : $ 1.783 billion.
• PV OF JLR : $ -0.440 billion.
• PV OF TM & JLR : $4.756 billion.
• Benefit
= PV OF TM & JLR – (PV OF TM + PV OF JLR)
= $4.756 – {$1.783+($-.440)}
= $3.413 billion.
 CONTINUE……
• COST
= CASH – PV OF JLR
= $2.3 –($ -0.440) = $2.74 billion.
NPV OF TM
= Benefit – Cost
= $3.413 – $2.74 = $0.673 billion.
NPV OF JLR
= CASH - PV OF JLR
= $2.3 –($ -0.440) = $2.74 billion.