AGCO CEO Highlights Settlement With TAFE On Commercial, Governance, Shareholding Matters
Mallika Srinivasan, Chairman and Managing Director, TAFE, too, acknowledged the efforts of all involved in the "amicable settlement".
The US-based agriculture machinery giant AGCO had finalised an agreement with TAFE, under which AGCO will exit its 20.7 per cent shareholding in TAFE for a consideration of $260 million.
AGCO Corporation Chairman and CEO Eric P Hansotia has said the company has announced the resolution with TAFE on all outstanding commercial, governance and shareholding matters.
Speaking during AGCO's Q2 2024 earnings call on July 31, Hansotia confirmed that the US-based agriculture machinery giant will exit its 20.7% shareholding in TAFE for a consideration of $260 million. The move makes TAFE a fully owned subsidiary of the Chennai-based Amalgamations Group, a diversified industrial conglomerate.
The agreements will become effective upon the completion by AGCO and TAFE of certain governmental and other processes in India relating to the repurchase of the shares held by AGCO in TAFE.
'Turning to a couple AGCO-specific items. We recently announced the resolution with TAFE on all outstanding commercial, governance, and shareholding matters… This agreement paves the way for a more shareholder-friendly capital allocation strategy, including the new $1 billion share repurchase program that Damon will discuss shortly," said the CEO during earnings call on July 31, 2025.
'We appreciate the TAFE relationship for its years as a commercial partner and continued support as a shareholder. AGCO's Board and management team are fully focused on our Farmer-First strategy, which we believe will improve outcomes for farmers, drive operational success for our company and deliver strong returns for shareholders," he said at that time.
Mallika Srinivasan, Chairman and Managing Director, TAFE, acknowledged the efforts of all involved. In a statement, she thanked all TAFE teams, lawyers and stakeholders for their 'efforts and support in achieving an amicable settlement and comprehensive resolution of all legal disputes pertaining to the AGCO matter".
Meanwhile, AGCO reported net sales of $2.6 billion for the second quarter ending June 30, 2025, a decrease of 18.8% compared to the second quarter of 2024. The second quarter of 2024 included other revenues of $290.5 million, which represent revenue from the company's divestiture of the majority of its Grain & Protein business as shown in the regional net sales table.
Reported net income was $4.22 per share for the quarter and adjusted net income (1) was $1.35 per share. These results compare to reported net loss of $(4.92) per share and adjusted net income (1) of $2.53 per share for the second quarter of 2024. Excluding favorable foreign currency translation of 3.5%, net sales in the quarter decreased 22.3% compared to the second quarter of 2024.
'AGCO achieved solid second-quarter results with deliberate execution in the areas we can control despite a challenging global agricultural environment marked by weak farm economics and delayed purchasing decisions in several parts of the world," Hansotia informed investors in a statement on July 31.
'Our strong earnings and cash flow generation illustrate meaningful progress in reducing dealer and company inventories through aggressive production cuts. Operating margins benefited from disciplined cost control and continued implementation of our restructuring initiatives. Demand for our premium brands remains resilient, supported by growing interest in precision agriculture and sustainable technologies."
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August 04, 2025, 15:03 IST
News business AGCO CEO Highlights Settlement With TAFE On Commercial, Governance, Shareholding Matters
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