Tata Motors to Fund $1.1 Billion of Iveco Acquisition Via Equity

Jaguar Land Rover parent Tata Motors Ltd. plans to fund about a fourth of the total tab for acquiring Iveco Group ’s commercial vehicle business, through equity.

About €1 billion ($1.1 billion) of the €3.8 billion buyout will be financed through equity and the rest with long-term debt, Tata Motors Chief Financial Officer P. B. Balaji said at a press briefing on Thursday.

The purchase of the Italy-based firm’s truck making business will be funded initially by a short-term bridge loan, and later refinanced with a mix of equity and long-term debt over 12 to 18 months, he added.

Tata ...