Leading two-wheeler manufacturer, TVS Motor Company Limited announced today that its wholly-owned subsidiary, TVS Motor (Singapore) Pte Ltd. (TVSM Singapore), has divested its stake in ION Mobility Pte. Ltd., a Singapore-based associate company. The transaction, completed today, involved TVSM Singapore exchanging its equity in ION Mobility for identified assets from the company, with a net cash consideration of approximately USD 1.75 million.
According to the company’s submission, ION Mobility, previously an associate as per the audited financial statements for FY 2023-24, contributed ₹73.67 crore to TVS Motor’s net worth during that period. However, as an associate entity, its revenue was not consolidated line-by-line into TVS Motor’s financials. The divestment marks the end of ION Mobility’s status as an associate of both TVSM Singapore and TVS Motor Company. The transaction was valued based on a report from an independent valuer, ensuring transparency in the process.
The share transfer agreement and the completion of the deal both occurred on March 31, 2025, as outlined in the company’s Annexure I disclosure. The buyers in this transaction include ION Mobility itself and its promoter, Chan Lianghong James. TVS Motor clarified that neither ION Mobility nor Chan Lianghong James are part of the promoter or promoter group of TVS Motor, ruling out any related party affiliations. Furthermore, the company emphasized that the transaction was conducted at arm’s length, despite not qualifying as a related party transaction under regulatory definitions.
TVS Motor also confirmed that the divestment and asset acquisition do not fall under the category of a sale, lease, or disposal of an undertaking outside a Scheme of Arrangement, rendering compliance with Regulation 37A of the LODR Regulations inapplicable. Similarly, the company clarified that the transaction does not classify as a slump sale, and thus, no additional disclosures related to amalgamation or merger were required.