TVS Group Family to rejig ownership in line with companies’ management

Chennai, Dec 10 : The members of $8.5 billion TVS family on Thursday decided to restructure the ownership of various companies, a measure which does not involve payment of brand royalty to the family members or their holding companies.
The family members heading the group’s listed companies like TVS Motor Company Ltd, TVS Srichakra Ltd, Wheels India Ltd and others, in an identical letter, have intimated the respective Company Secretaries about the family decision and these were, in turn, filed with the stock exchanges.
“With the passage of time, various members of the TVS Family felt that the ownership of shares in various companies/businesses should align and synchronise with the management of the respective companies, as is currently being done, the regulatory filing said.
“Keeping this objective in mind, the members of the TVS Family have today agreed to subscribe to the terms of a memorandum of family arrangement in order to record the terms of the family arrangement so agreed upon,” the filing added.
Senior nominated members of the family shall now deliberate on how best to further implement this arrangement.
According to the TVS family, the new arrangement shall not affect the management and functioning of the companies in any way, and they expect to continue business in ordinary course without impacting any of the stakeholders.