Team Blitz India
NEW DELHI: MG Motor India, a unit of Chinese company SAIC, is likely to have found a new investor in Sajjan Jindal, Chairman and Managing Director of the JSW Group.
The Indian steel bigwig is reportedly in talks to purchase the Ford factory in Chennai and form a new company by acquiring a stake in MG Motor India. Media reports said he is also planning to foray into the EV market, for which talks with Chinese auto company Leapmotor are underway. The aim is to licence its technology for electric vehicles.
This is being seen as a critical deal that will have a defining impact on the expansion plans of MG Motors and will provide it with much-needed financial impetus.
The model adopted by Jindal is to take the partnership route to building a strong network of technologies and vehicle platforms.
As per the latest reports, while he is looking at acquiring 45-48 per cent stakes in MG, Jindal could initially get over 30 per cent of the company, with MG Motor continuing to control a majority stake along with local financial institutions and employees. There are plans for an IPO that would give the Jindal entity a controlling stake.
It is further being said that Hero Group, Reliance, and Premji Invest are also said to be in the race to acquire the automaker.
