Tata Motors Limited, through its indirect wholly-owned subsidiary TML CV Holdings B.V., has announced an increase in its voluntary totalitarian tender offer for all common shares of Iveco Group N.V. The offer price has been raised from Euro 14.10 to Euro 14.40 per share, marking a Euro 0.30 increase. This revised price is declared as the best and final offer by TML CV Holdings B.V., with no further increases planned.
The decision to enhance the offer price comes despite TML CV Holdings B.V.’s belief that the previous valuation was fair. The increase was prompted by a delay in the completion of the offer due to extended authorisation processes in certain jurisdictions. The new offer price, which is cum dividend, assumes that Iveco Group will not distribute any dividends before the payment date.
The revised offer represents a premium of 6.77% over the official share price recorded on 29 July 2025, the last trading day before the announcement of the offer. It also reflects a 33.47% premium over the share price on 17 July 2025, prior to rumours of a potential acquisition by Tata Motors. Additionally, the new offer price shows premiums of 26.87%, 27.57%, 38.23%, and 67.98% over the volume-weighted averages of the share prices for one, three, six, and twelve months preceding the undisturbed date, respectively.
To fund the additional cost arising from the increased offer price, TML CV Holdings B.V. has secured a credit facility agreement with MUFG Bank Ltd., GIFT Branch, for Euro 85 million. This facility will support the payment of the additional price to shareholders who tender their shares. The maximum aggregate disbursement, if all shares are tendered, will rise to Euro 3.91 billion.
Market analysts view this move as a strategic effort by Tata Motors to consolidate its position in the commercial vehicle sector by acquiring Iveco Group, a prominent player in the industry. The increased offer underscores Tata Motors’ commitment to the acquisition, despite the complexities involved in cross-border regulatory approvals.
