TVS Motor Company, a leading two-wheeler manufacturer, announced today that its wholly owned subsidiary, TVS Motor Singapore (TVSM Singapore), has divested its stake in Ion Mobility, a Singapore-based associate company.

The transaction, completed on 31st March 2025, involved TVSM Singapore exchanging its equity in Ion Mobility for specified assets from the company, with a net cash consideration of approximately US$ 1.75 million.

According to the company's disclosure, Ion Mobility was classified as an associate in the audited financial statements for the financial year 2023 - 24, contributing Rs. 736.7 million (US$ 8.8 million) to TVS Motor's net worth during that period.

However, as an associate entity, its revenue was not consolidated on a line-by-line basis in TVS Motor's financials. The divestment marks the termination of Ion Mobility's status as an associate of both TVSM Singapore and TVS Motor Company. The transaction was valued based on an independent valuation report to ensure transparency.

The share transfer agreement and completion of the transaction both took place on 31st March 2025, as stated 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 is part of the company's promoter or promoter group, thereby ruling out any related party affiliations. Furthermore, the company emphasised 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 constitute a sale, lease, or disposal of an undertaking outside a Scheme of Arrangement, rendering compliance with Regulation 37A of the LODR Regulations inapplicable.

Additionally, the company clarified that the transaction does not qualify as a slump sale, and therefore, no additional disclosures related to amalgamation or merger were required.