Tafe Agco Agreement

The newspaper reported that, as part of the agreement, TAFE has the right to submit a non-public offer to AGCO Chairman Martin Richenhagen and AGCO`s board of directors « to acquire all or part of the issuer or propose another similar strategic transaction that would result in a change of control of the issuer. » According to a Sept. 3 report in the Atlanta Business Chronicle, AGCO owned 8 million shares, or 8.6 percent of AGCO`s shares, on Aug. 29 when it struck a deal with Mallika Srinivasan, CEO of TAFE. In the agreement, TAFE, Srinivasan and their related companies agreed not to increase their stakes beyond 12.5% of AGCO. The ambitious boss of TAFE plans to be more aggressive in the future and wants to increase the current turnover from about $ 2 billion today to $ 5 billion within 3-5 years. With a 25% share of the Indian tractor market (after Mahindra & Mahindra), the world`s third largest tractor company produces about 170,000 tractors per year. In 1960, TAFE entered into a licensing agreement with Massey Ferguson for the assembly of CKD tractors up to 75 hp, called MF and sold in India. AGCO currently owns 23.5% of TAFE. Last September, AGCO announced that it had reached an agreement with Ms. Srinivasan not to increase its stake in AGCO beyond 12.5%. Given the recent weakness in buying activity, we can only assume that this limit has already been reached, making TAFE the largest sole shareholder of the North American group.

« Mallika wanted to show how much she believes in our business and how much she believes in our strategic alliance and wanted to buy more. To make sure that we are not complicated in the long term, we have agreed on a standstill agreement which, based on the inventory of actions as of 31 December 2013, is 12.5%, and that is pretty much what it supports by the programmes, and it is quite close. I think it`s currently about 11%, 11%, 11.2%, 11.3%, 11.4%, depending on how you see it. And we`re actually very happy to have such a large strategic shareholder, » Richenhagen said. Since the agreement was reached with AGCO and as of October 3, TAFE has invested an additional $44 million in AGCO shares and remains the company`s largest shareholder. The CEO of India`s second-largest tractor manufacturer TAFE (Tractor and Farm Equipment Ltd.), AGCO`s largest shareholder, has reached an agreement with AGCO that would limit its stake in the world`s third largest manufacturer of AG equipment. . .