Ashok Leyland Surges Amid Reports of Potential SML Isuzu Buyout
Market Insights – Shares of Ashok Leyland Ltd. (NSE:ASOK) saw a notable uptick on Wednesday following a report from MoneyControl indicating that the Indian commercial vehicle giant is in the final stages of acquiring SML Isuzu Ltd. (NSE:SMLI).
According to sources cited in the report, Japan’s Sumitomo Corp. (TYO:8053) and Isuzu Motors, which collectively own around 59% of SML Isuzu, are engaged in advanced negotiations with Ashok Leyland to offload their stakes.
Currently, Sumitomo holds a 44% stake, while Isuzu Motors owns 15%. The combined shareholding is estimated to be worth ₹1,350 crore, with Ashok Leyland reportedly considering a 10-15% premium over the three-month average stock price.
Following the news, Ashok Leyland’s stock price climbed 4.3% to ₹219 as of 11:30 AM IST, marking its highest level since March 3. Meanwhile, SML Isuzu shares gained 3.4%, reaching ₹1,663.
Adding to the anticipation, Ashok Leyland has called for a corporate update meeting with investors on March 26, shortly after an unscheduled board meeting, as per the report.