March 10, 2010 (FinancialWire) — German car and truck maker Daimler (NYSE: DAI) said it has sold all of its 5.34% of the ordinary shares of Indian automotive company Tata Motors to various groups of investors through the capital market.

The company said it will receive a cash inflow of roughly euro 300 million from the sale of its shares, due to the recent increase in the price of Tata shares. Daimler said the transaction will have a positive effect on its EBIT of around euro 265 million and will be accounted for in the first quarter of 2010.

In a statement, Daimler said that having an equity position in Tata is no longer necessary. The company said it is 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. Daimler said it made the move “in full consultation” with Tata, and that relations between the two companies “are excellent and will not be adversely affected by this sale.”

Daimler has been building cars and trucks in India for years. Its Mercedes-Benz brand, through its wholly owned subsidiary Mercedes-Benz India, has been producing Mercedes-Benz cars and commercial vehicles in Pune, India since 1995. In February 2009, the company opened a new plant in Pune for Mercedes-Benz E-Class and S-Class models. Overall, the brand is represented with showrooms and service centers in 25 cities.

Daimler Trucks sees India as one of the key markets of the future, due to its expectation of strong growth in demand for commercial vehicles is expected in the BRIC countries overall.

Daimler India Commercial Vehicles Ltd. took over the marketing of Fuso branded commercial vehicles in India at the beginning of 2010. The unit sold its first Fuso brand vehicle to an Indian customer in January 2010.

FinancialWire(tm) is committed to serving the financial community through true journalism and providing relevant resources to investors. Standards-based, independent equity research on numerous public companies is available through the Investrend Research Syndicate (http://www.investrend.com/reports) written by FIRST Research Consortium (http://www.investrend.com/FIRST) member-providers. Free annual reports and company filings for companies mentioned in the news are available through the Investrend Information Syndicate (at http://investrend.ar.wilink.com/?level=279). FinancialWire(tm), in cooperation with the Investrend Broadcast Syndicate, also provides complete, daily conference call and webcast schedules as a service to shareholders and investors via the FirstAlert(tm) Network’s “FirstAlert(tm) Daily” (http://www.financialwire.net/news-alerts/).

FinancialWire(tm) is a fully independent, proprietary news wire service. FinancialWire(tm) is not a press release service, and receives no compensation for its news, opinions or distributions. Further disclosure is at the FinancialWire(tm) website (http://www.financialwire.net/disclosures.php). Contact FinancialWire(tm) directly via inquiries@financialwire.net.

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.