Following on from its last March, the Tata Motors board approved a composite scheme of arrangement amongst TML, TML Commercial Vehicles Limited (TMLCV), Tata Motors Passenger Vehicles Limited (TMPV) and their respective shareholders.
As a part of the Scheme, TML will demerge its commercial vehicle undertaking.
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The existing passenger vehicle business in TMPV, will be merged into TML, the existing listed entity.
Once the scheme if effective, both TMLCV and TML will be renamed, resulting in two separate listed entities: the CV business and its related investments, under the name TML and the PV business, the Electric Vehicle (TPEM) business, JLR and their related investments, under the name TMPV.
Shareholders of TML will receive one share of TMLCV for every one share of TML of the same class.
“These actions would further empower the respective business groups to pursue their differentiated strategies with greater agility while reinforcing accountability and will enhance shareholder value,” the automaker said in a statement.
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By GlobalDataThe scheme would not have any adverse impact on employees, customers, creditors and other business partners.
It is subject to all the necessary shareholder, creditor and regulatory approvals which can take around 12-15 months to complete.
