Report: Tata Buying Stock to Protect JLR from Takeovers

India’s Tata Sons Ltd., the holding company for various Tata Group companies, is increasing its stake in Tata Motors Ltd. to protect the affiliate’s Jaguar Land Rover unit from potential takeover, sources tell Bloomberg News.

Tata Sons aims to buy about 1.7 % of Tata Motors’ stock for about 20 billion rupees ($312 million), according to the news service. The price represents a 4% premium over the stock’s closing value on Monday.

The stock purchase is part of Tata Sons plan to increase its ownership in several of its largest businesses. In addition to Tata Motors, the group includes Tata’s steel, beverages, power, hotel and chemicals subsidiaries.

Indian regulations allow Tata to buy an additional 5% stake in its subsidiaries each financial year without triggering an open offer, Bloomberg says. Tata Group (including shares through Tata Sons) bought an additional 1.7% of Tata Motors last December and controlled nearly 35% of the carmaker at the end of June.

Tata purchased JLR for $2.3 billion from Ford Motor Co. in 2008.