TVS Srichakra given green signal to sell its entire stake of TVS Europe Distribution.
The TVS Group’s board has shown a green signal to the sale of it’s firm TVS Srichakra’s entire shareholding in TVS Europe Distribution to TVS Automobile Solutions. In a statement made by the company officials it was said that, “The company proposes to sell its entire shareholding of 33,25,000 shares held in TVS Europe Distribution Limited, a subsidiary of TSL, in favour of TVS Automobile Solutions Limited.”
The firm has also put forth a proposal to buy 15,89,699 Compulsory Convertible Preference Shares (CCPS) in TVS Automobile Solutions Ltd, amounting to Rs 40 crore. Speaking of the proposal the company said that, “The Board of Directors of the company at their meeting held on February 6, 2016, had approved the sale of equity shares in TVS EDL and purchase of CCPS in TVS ASL.” Also, in a separate statement by the company it was added that, “TVS Srichakra Investments Ltd, a wholly-owned subsidiary, had offered to convert the unsecured loan amounting to Rs 34.59 crore, to unsecured Optionally Convertible Debentures (OCDs) and had further offered fresh issue of OCDs not exceeding Rs 10 crore, both having a tenure of 4 years 11 months.”