TVS Group rejig as part of family settlement starts, Auto News, ET Auto

CHENNAI: As component of the ongoing household settlement, the TVS Group has introduced a sequence of demergers and amalgamations involving holding firm Tv set Sundram Iyengar & Sons (TVSS) and team corporations like TVS Motor Company, Sundaram Clayton, Sundaram Industries, Southern Roadways, TVS Sundram Fasteners, Wheels India, TVS Srichakra amongst others.

As component of a composite plan accredited by the Countrywide Company Law Tribunal (NCLAT) Chennai bench past week, Sundaram Industries and Southern Roadways have been merged into TVSS and dissolved “without the method of winding up”. As end result of this merger, the shareholding of Southern Roadways and Sundaram Industries in a variety of team corporations have been transferred to TVSS to be additional transferred to respective holding corporations on February 4.

For instance, Sundaram Industries and Southern Roadways’ forty four.ninety four% stake in Sundaram Clayton, which is the promoter of TVS Motor, has been transferred to TVSS following which TVSS’ stake in Sundaram Clayton has absent up from 19.78% to sixty four.72%. On February 4, which is the second appointed date for the method, the two-wheeler, vehicle pieces and die casting small business of TVSS comprising fairness shares of Sundaram Clayton and also of TVS Motor held by means of Sundaram Clayton will be demerged from TVSS and moved to TVS Holdings Pvt Ltd (THPL). TVSS had indirectly obtained just in excess of 52% voting legal rights in TVS Motor, which will also transfer to THPL. In the same way, the shareholding of Southern Roadways in Sundram Fasteners comprising 24.sixteen% stake has been transferred to TVSS. As a end result, TVSS’ holding in Sundram Fasteners has absent up from 25.37% to forty nine.fifty three%. Sundaram Industries does not maintain any shares in Sundram Fasteners. Ditto for Wheels India which too will see a related transfer of stake.

The Southern Roadways’ stake in Wheels India comprising nine.28% has been transferred to TVSS.

This has greater TVSS’ stake in Wheels India from 20.41% to 29.69%. Sundaram Industries does not maintain any shares in Wheels India. On February 4, the Sundaram Motors and Madras Automobile Services Dealership and automotive small business of TVSS, which contains stake in Wheels India as effectively as India Motor Sections & Add-ons Limited (IMPAL), will be demerged and transferred to Trichur Sundaram Santhanam & Spouse and children Personal Limited (TSSFPL). IMPAL as component of the promoter/ promoter team holds 4.57% of Wheels India, even though TVSS holds 21.87% in IMPAL. Submit transfer, TSSFPL will therefore obtain 29.69% in Wheels India specifically and 4.57% indirectly by means of IMPAL.

In the same way Sundaram Industries’ 6.45% stake and Southern Roadways’ 12.sixteen% stake in Sundaram Brake Linings has been transferred to TVSS increasing its shareholding in Sundaram Brake Linings from fourteen.05% to 32.sixty seven%. On February 4 or the second appointed date, this will be demerged from TVSS and transferred to Madurai Alagar Enterprises Personal Limited. TVS Srichakra will also abide by a related route with Sundaram Industries nine.seventy nine% stake transferring to TVSS, thereby increasing its shareholding from 27.73% to 37.52%. This chunk will move to TVS Mobility Pvt Ltd on February 4, this yr.

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