27 Feb , 2024 By : Debdeep Gupta
TVS Motor's Singapore arm boosts take in German company, stock falls, The acquisition of Killwatt GmbH aligns with TVSM's vision to emerge as a key player in the e-personal mobility sector, aiming to offer sustainable mobility solutions to its customers
Shares of TVS Motor Company Limited traded a percent lower to Rs 2,133 in morning trade on February 27 a day after the counter closed over 2 percent higher.
The company announced that its Singapore subsidiary, TVS Motor Pte, acquired an additional 8,000 equity shares in Killwatt GmbH, a company based in Germany.
"Under the acquisition as mentioned earlier, the shareholding of TVS Motor (Singapore) Pte Ltd in Killwatt GmbH will be increased from 39.28 percent to 49 percent, by way of newly issued shares of Killwatt GmbH," the company stated in a stock exchange filing.
Established in July 2020, Killwatt GmbH is focused on developing, designing, manufacturing, selling, and distributing products and components within the electric two-wheeler vehicles sector.
The acquisition of Killwatt GmbH aligns with TVSM's vision to emerge as a key player in the e-personal mobility sector, aiming to offer sustainable mobility solutions to its customers. This strategic move complements TVSM's recent acquisitions in the electric mobility space, further strengthening its presence and capabilities in this evolving market. The transaction is being conducted at arm's length and is anticipated to be finalized on March 11, 2024.
The complete consideration for acquiring 8,000 equity shares in Killwatt GmbH amounts to €4 million. TVS Motor (Singapore) Pte Ltd is set to make an initial payment of €2 million on or before March 4, 2024, while the remaining €2 million will be paid later. The final payment is contingent upon the fulfillment of a specific pre-agreed milestone by Killwatt GmbH.
At 11:30 am, the stock was trading at Rs 2,149, down 0.6 percent from the previous close on the NSE. The share price has gained over 20 percent in the last three months.
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