According to sources, the Chinese auto giant SAIC-owned MG Motor may be trying to sell its majority position in the Indian auto industry. It has been reported that the Chinese-British automaker is in “advanced negotiations” for an equity sale with a number of interested parties, including Reliance Industries, Hero Group, Premji Invest, and JSW Group. Although it has not been reported which of these groups is interested, it has been stated that the company is looking to close the deal before the end of this year.
One source who is knowledgeable about the situation commented, “Hectic discussions are on with Indian companies, and MG Motor is looking to close a deal by the end of this year.” The source added that the talks have reached an advanced stage and the reason behind this move is that the company needs funds almost immediately to further increase its operations in the country. The company aims to expand its production and operations in the near future. The source further stated, “Negotiations are on, and the effort of MG management is to get a credible partner while managing attractive valuations.”
The company recently announced that it plans to sell a majority of its stake in the brand to Indian companies and high-net-worth individuals across the country because it wants to raise around Rs 5000 crore for its growth and expansion. Recently, while speaking to the media, MG Motor India CEO Rajeev Chaba stated that the company wants to “Indianise operation” by diluting the majority stake to financial institutions, partners, and high-net-worth individuals in the country. Chaba added, “We intend to Indianise shareholding, the company’s board, management, supply chain in the next two-four years.”