India’s Tata Motors plans to demerge business into two separate companies
INDIAN automaker Tata Motors plans to demerge into two separate listed companies to refine focus on the passenger and electric vehicle segments, it said in an exchange filing on Monday (Mar 4).
The commercial vehicles business and its related investments will be spun in one entity and the passenger vehicles (PV) businesses, including electric vehicles (EV), Jaguar Land Rover and related investments, in another entity.
Shareholders of Tata Motors will continue to have an identical shareholding in both the listed entities, the company said.
The demerger will help in better growth prospects for employees and enhanced value for shareholders, chairman N Chandrasekaran said in a statement.
The scheme of arrangement for the demerger shall be placed before the board in the coming months and will be subject to all necessary shareholder, creditor and regulatory approvals, which could take a further 12 to 15 months to complete, the company said.
The demerger will have no adverse impact on employees, customers, and business partners, it added. REUTERS
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Transport & Logistics
EV automakers get reprieve in US tax credit rules
Abu Dhabi hub carrier Etihad adds banks to US$1 billion IPO
Luminar to cut nearly 20% jobs as part of restructuring
Chinese share of French EV market slumps after incentives curbed
Ferrari unveils US$423,000 sports car with 1960s bloodline
Airbus called for compensation to take on money-losing Spirit operations: sources