(Reuters) – Indian automaker Mahindra & Mahindra is in talks to buy Japan’s Sumitomo Corp’s entire 44% stake in heavy vehicle-maker SML Isuzu, CNBC Awaaz reported on Monday, citing sources.
Mahindra is considering offering the Japanese trading firm 1,400 rupees to 1,500 rupees per share, according to the report, which will value SML Isuzu at 20.26 billion rupees ($236 million), as per Reuters calculations.
Shares of SML Isuzu, which manufactures trucks and buses, rose 5.4% to 1,741.20 rupees in Mumbai.
Mahindra’s board is likely to meet this week to discuss the proposed deal, the report said. The company makes trucks and SUVs.
“We do not comment on market speculation,” Mahindra said.
SML Isuzu did not immediately respond to a request for comment.
Japan’s Isuzu, which manufactures SUVs and pickup trucks through another entity, owns a 15% stake in SML Isuzu.
($1 = 85.6360 Indian rupees)
(Reporting by Nandan Mandayam in Bengaluru; Editing by Mrigank Dhaniwala)
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