TVS Motor Company on September 22 informed the stock exchanges that it has received shareholders’ nod for the sale of its entire 50.05 percent stake in Sundaram Holding USA Inc (SHUI), a wholly-owned subsidiary of the company, to Sundaram-Clayton Limited (SCL), the holding company.
TVS Motor will receive Rs 317.01 crore from the disposal.
The Board of Directors of SCL and Sundaram Auto Components Limited (SACL) had approved the transaction at their meeting held on July 29 and July 21, 2022, respectively.
To be sure, TVS obtained approval to sell stake in Sundaram Auto Components Limited (SACL), a wholly-owned subsidiary of the company, in a material step-down subsidiary viz., Sundaram Holding USA Inc., USA (SHUI), to Sundaram-Clayton Limited (SCL), the holding company.
Subsequently, SHUI has ceased as a subsidiary of SACL and also of the company and consequently, SHUI’s subsidiaries in the USA viz., Green Hills Land holding LLC, Component Equipment Leasing LLC, Sundaram-Clayton USA LLC and Premier Land Holding LLC have also ceased as subsidiaries of TVS Motor, the automaker stated.