Daimler on March 9 sold all of its 5.34 percent of the ordinary shares of Indian automotive company Tata Motors to various groups of investors through the capital market. Tata Motors' share price has risen significantly, especially last year, so Daimler will receive a substantial cash inflow of approximately euro 300 million from the sale of its shares. The transaction will have a positive effect on Daimler's EBIT of approximately euro 265 million and will be accounted for in the first quarter of 2010.
Daimler is now in an excellent position to capitalize on the growth potential of the Indian passenger and commercial vehicle markets and continues to intensify its own activities there. An equity participation of Daimler in Tata is therefore no longer necessary. This has been done in full consultation with Tata. Relations between the two companies are excellent and will not be adversely affected by this sale.
