TVS Group and WABCO Holdings have exited out from the two joint ventures in India, WABCO-TVS India Ltd and Sundaram Clayton ( SCL). While TVS has exited out from WABCO-TVS India, WABCO has transfered its holding in Sundaram Clayton to the TVS Group.
A WABCO-TVS official confirmed the development to VCCircle, saying, “the report is correct and the de-merger has taken place.”
Last week, New York Stock Exchange (NYSE) listed firm, WABCO Holdings hiked its stake in WABCO-TVS India to 75% from 39.2% by acquiring an additional 35.8% stake in the JV. WABCO bought the stake in a block deal in the Rs 9.48 crore paid up capital of the company. TVS will also sell its remaining 5% stake in WABCO-TVS, which is listed on the Bombay, Madras and the National stock exchanges.
TVS reportedly plans to sell the stake to institutional investors and banks. Post the stake sale, the company will have a 25% public holding as per the SEBI (Securities and Exchange Board of India) rules for MNC joint ventures.
WABCO-TVS designs, manufactures and markets braking products, advanced braking systems, and other related air compression products and systems. The company directly serves local as well as international customers through WABCO.
WABCO has too, excited out from Sundaram Clayton (SCL) by selling its 39.17% stake in the JV to TVS in the Rs 9.48 crore paid up capital of SCL through a block deal. As a result, TVS’s stake in SCL has gone up to 80% while the remaining 20% is held by the public.
SCL too manufactures braking systems such as Anti-Lock Braking System (ABS) and Anti-Spin Regulation (ASR). The company exports spare parts to over 15 countries.
Post the de-merger, WABCO would have the WABCO-TVS plants at Ambattur, Chennai, Mahindra world city- SEZ and Jamshedpur.