JSW’s Sajjan Jindal may acquire up to 48% in MG Motor India; turn it into an Indian entity

JSW Group Chairman Sajjan Jindal-owned private company aims to buy 45-48 per cent into MG Motor India, a wholly-owned arm of SAIC Motor. JSW Steel and JSW Energy reportedly would not have any exposure.

As per the broad contours of the deal, Jindal would own 45-48 per cent, while 5-8 per cent would be owned by the dealers and Indian employees, and SAIC would hold the rest, according to a report in The Economic Times. The plan has been approved by the Indian government, as per the report.

As much as 51 per cent of the equity will be in Indian hands, and the Chinese would become a minority partner with a maximum 49 per cent, the report added.

A senior government official told the daily it would become an Indian entity, instead of a Chinese one. The official also hinted on a possible India listing in the next few years.

The top management and board would have a larger share of Indians.

The plans are in line with what Jindal had told Business Today at the World Economic Forum in Davos. He said it is time to build a very high-quality car in India, similar to a Tesla, which is what he is really working on.

"We are still in our early days. Idea is to make a car from India that will be for India but will be for a global market as well. So, we would want the car to be made in the country for Indians but also such a technology that should be sold in Europe and Japan as well," he had said.

Meanwhile, Jindal and his son, Parth, were in China to meet the SAIC leadership and discuss the alliance, the report added. Legal agreements have been initiated with a formal binding pact likely in the next three to four months.

MG Motor offers Astor, Hector, and Gloster, along with Comet and ZS electric vehicles in India.

The valuation of MG Motor India is pegged at $1.2-1.5 billion, which is a dip from the original ask of $8-10 billion, the report added.

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