The Hindu : Business : TVS Electronics’ investment transfers

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Wednesday, Aug 15, 2007
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TVS Electronics’ investment transfers

Special Correspondent

To get out of the non-core businesses

CHENNAI: TVS Electronics has gone in for an organisational revamp by announcing a series of investment transfers as a composite package.

The objective is to get out of the non-core businesses. In a notification to the Bombay Stock Exchange (BSE), the company said that these transfers had since been approved by the board at its meeting on Monday.

According to the notification, 1.48 crore equity shares of Rs. 10 each, representing 35.85 per cent of the equity capital of TVS Finance and Services Ltd. have been transferred to TVS Investments Ltd., the holding company of TVS Electronics. The shares have been transferred at par for a total consideration of Rs. 14.84 crore. Similarly, the company has transferred its entire holding (50,000 shares) in TVS-E Servicetec Ltd. to TVS Investments. This has also been done at par. The company has also transferred its entire equity stake in Sravanaa Properties Ltd. to TVS Investments, again at par. Following these transfers, TVS Investments would discharge the amount owed by TVS-E Servicetec and Sravanaa to TVS Electronics.

Preferential offer

The board, the notification said, also approved a proposal to transfer certain properties of the company, considered non-core assets, to two wholly owned subsidiaries of the company to be formed for the purpose at a price not less than the book value of the said properties.

The notification also said that TVS Investments, had consented to waive its right to the proposed preferential offer of 36 lakh warrants convertible into equal number of equity shares at Rs. 48.50 per warrant, which was approved by the shareholders in the extraordinary general meeting held on March 28..

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