The CEO of India’s second largest trac­tor manufacturer, TAFE (Tractor and Farm Equipment), who is AGCO’s largest shareholder, has reached an agreement with AGCO that would limit her stake in the world’s third larg­est ag equipment maker.

The newspaper reported that TAFE is permitted under the agreement to make a non-public offer to AGCO Chairman Martin Richenhagen and AGCO’s board “to acquire all or a part of the Issuer [AGCO] or propose another similar strategic transaction that would result in a change of con­trol of the Issuer.” According to a September 3 report in the Atlanta Business Chronicle, as of August 29, when AGCO reached an agreement with Mallika Srinivasan, CEO of TAFE, she owned an estimated 8 million shares, or 8.6%, of AGCO’s stock. In the deal, TAFE, Srinivasan and their affiliates agreed not to increase their holdings beyond 12.5% of AGCO.

AGCO has agreed “to promptly inform TAFE of any offer to acquire all or substantially all of the Issuer, or other similar strategic transaction that would result in a change of control of the Issuer, submitted to the Board for formal consideration or which the Board has requested management to evaluate before consideration, and any commencement of a review of strategic alternatives which includes a possible sale of all or substantially all of the Issuer, and permit TAFE the opportunity to make a private offer to acquire all or substantially all of the Issuer, or other similar strategic trans­action that would result in a change of control of the Issuer...”

The paper goes on to say, TAFE would be released from the restric­tions in the agreement with AGCO if AGCO publicly announces a review of its strategic alternatives which includes a possible sale of all or sub­stantially all of the company or if any person commences a public tender offer for AGCO.

Since reaching agreement with AGCO and as of October 3, TAFE has invested another $44 million into AGCO stock and remains the com­pany’s largest shareholder.

The Atlanta Business Chronicle noted that Fortune magazine in a September 18 report referred to Srinivasan as “one of the most power­ful women in the Asia-Pacific area.”

The magazine also said that Srinivasan’s long-term strategic alli­ance with AGCO “has helped TAFE become India’s largest exporter of tractors. The president of India hon­ored her this year with the Padmashri, one of the highest civilian awards, for her contribution to trade and industry.”

The company announced last Thursday that its Board of Directors declared a regular quarterly dividend of $0.11 per common share to be paid on December 15, 2014 to all stockholders of record as of the close of business on November 14, 2014.