TVS Motor Company Limited’s subsidiary, TVS Motor (Singapore) Pte Ltd, has agreed to acquire an additional 25% stake in Swiss E-Mobility Group (Holding) AG (“SEMG”), Switzerland by way of purchase of shares from the existing shareholders.
SEMG is currently a subsidiary of TVS Motor (Singapore) Pte Ltd and the Company and consequent to the additional acquisition, SEMG will become a wholly owned subsidiary of TVS Motor (Singapore) Pte Ltd and also the Company.
In order to establish a strong presence in the e-mobility business, TVS Motor Company Limited had, through its Singapore subsidiary, TVS Motor (Singapore) Pte Ltd (“TVS Singapore”), acquired 75% stake in SEMG on 27 January 2022, by way of purchase of 114,658 shares from the existing shareholders (“Minority Shareholders”) of SEMG (“Transaction”).
The shareholders agreement (“SHA”) executed between TVS Singapore, the Minority Shareholders and SEMG, pursuant to the Transaction, provided the Minority Shareholders with a put option right (“Put Option”) to sell their balance stake of 25% amounting to 38,217 common equity shares (“Sale Shares”) to TVS Singapore, in accordance with terms of the SHA.
The Minority Shareholders have exercised the Put Option on 17 May 2023 and accordingly, a share purchase agreement has been executed on 9 June 2023 between TVS Singapore and the Minority Shareholders for the sale of Sale Shares to TVS Singapore.
The cost of acquisition of Sale Shares is CHF 517.36 per share leading to a cost of CHF 19.77 million or about INR 180 crores.
SEMG is a fully integrated e-bike platform with its core business consisting of purchase and re-sale of own branded e-bikes, third party branded e-bikes and spare parts through retail and online stores in Switzerland and Germany. SEMG has a network of 34 retail stores in Switzerland and 2 stores in Germany. In 2022, SEMG generated a turnover of CHF 64.62 Million.
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