Leading commercial vehicle maker and Hinduja group company Ashok Leyland has issued a clarification to an earlier Moneycontrol news report which had said that the company was close to concluding a takeover of SML Isuzu, calling it as 'factually incorrect', an exchange filing on March 26 said.
"The Company would like to outrightly deny this news as factually incorrect," Ashok Leyland said in the statement.
Shares of both Ashok Leyland and SML Isuzu have cooled off from the highs of the day, soon after the announcement was shared.
Ashok Leyland had called for a board meeting on March 26, followed by an investor call later in the evening. Emails sent by Moneycontrol to both Ashok Leyland and SML Isuzu had remained unanswered at the time of the publishing of the story on March 25.
Earlier, on March 24, CNBC-Awaaz had reported citing sources that Mahindra & Mahindra (M&M) is in talks to acquire Japan's Sumitomo Corp's entire stake in heavy vehicle maker SML Isuzu. M&M is looking at valuation of Rs 1,400-1,500 per share for SML Isuzu, the channel reported.
When contacted, M&M had told the channel that it does not wish to comment on the speculation.
Classified as a promoter, Sumitomo holds roughly 44 percent stake in the Indian unit of Isuzu, while Isuzu itself holds 15 percent.
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