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TVS Supply Chain Solutions (TVS SCS) on Friday announced two major asset sale transactions worth ₹72.62 crore. It has sold 4.5 per cent of its equity stake in TVS Industrial and Logistics Parks Pvt Ltd (TVS ILP), an associate company, to Lingotto Opportunity Fund LLP, for a consideration of ₹51.30 crore. It also announced the sale of Circle Express, through its UK Subsidiary RICO Logistics, to Winever Industries UK for a transactional value of ₹21.32 crore.
TVS ILP, a part of TVS Mobility Group, announced a strategic partnership with Lingotto, an investment management company owned by Italy’s Exor NV. This transformative partnership was through a secondary stake sale of 4.5 per cent by TVS SCS for ₹51.3 crore and soon Lingotto will acquire a significant minority stake in TVS ILP.
This secondary transaction has taken place at an enterprise value of ₹2,800 crore, emphasising the potential and size of TVS ILP, says a release.
Exor in October 2021 invested ₹590 crore in TVS SCS.
R Dinesh, Chairman, TVS Supply Chain Solutions, “We are very happy to welcome a marquee investor like Lingotto into TVS ILP. We continue to hold a significant minority stake at TVS ILP and the strategic partnership with Lingotto should further enable TVS ILP to grow in its value-creation journey.”
The decision to divest Circle Express aligns with TVS SCS commitment to deliver superior value to its shareholders and optimise its business portfolio. By shedding this non-core asset, the company will align its strategic focus and resources with its core business objectives, says a release.
Share price of TVS SCS on the National Stock Exchange closed at ₹215.00, down by 0.94 per cent.
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