TVS Group files scheme of amalgamation involving holding companies

The group currently has over 50 companies that have been traditionally managed by members of different branches of the TVS family | File photo
The $8.5 billion TVS Group on Thursday filed a composite scheme of amalgamation and arrangement involving its holding companies at the National Company Law Tribunal in Chennai.

Families that run the group on December 10 made an arrangement that spelled out share holding in T V Sundram Iyengar & Sons Private Limited (TVSS), Sundaram Industries Private Limited (SIPL) and Southern Roadways Private Limited (SRW). The three collectively became TVS holding companies.

The listed entities on Thursday informed stock exchange that the composite scheme of amalgamation and arrangement involving, inter alia, T.V. Sundram Iyengar & Sons Private Limited, Sundaram Industries Private Limited, Southern Roadways Private Limited and TVS Investments and Holdings Private Limited has been filed with the tribunal.

Senior members have earlier said that present shareholders of the TVS holding companies primarily consist of third and fourth generation family members of the original founder, TV Sundaram Iyengar.

The group currently has over 50 companies that have been traditionally managed by members of different branches of the TVS family.

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With the passage of time, various members of the TVS family felt  that the ownership of shares in various companies/ businesses should align and synchronise with the management of respective businesses.

Family members said this will preserve memories of the original founder, TV Sundaram Iyengar, and maintain the overall peace and harmony within the TVS family. The MFA has been executed among various members of the TVS family who are shareholders of the holding companies, including TVSS and SIPL.

The restructuring will give each family group complete ownership of businesses they manage while scrapping the holding company. According to the new terms, the family has agreed to scrap any cross-holdings. Share buyouts among the family members have already started.

The restructuring will involve nine listed companies, including TVS Motor, Sundaram Clayton, Sundram Fasteners, TVS Electronics and TVS Srichakra, among others.

The family members will buy out shares of the TVS holding firms in their companies. This arrangement will not include Sundaram Finance as it is already de-linked from the holding companies.

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