Tata Motors Passenger Vehicles Ltd.

Tata Motors has got approval for the sale of its defense business to Tata Sons’ -- wholly-owned subsidiary Tata Advanced Systems (TASL), by way of a Scheme of Arrangement to be entered between the company, TASL and their respective members and/or creditors. Tata Motors will receive an upfront consideration of Rs 100 crore, adjusted for capex incurred and changes in working capital in the intervening period until closure date, and a deferred consideration of 3% of the revenue generated from identified Specialized Defence Projects for upto 15 years from FY20 subject to a maximum of Rs 1750 crore.

The company has also got approval for the sale of its shareholding in TAL Manufacturing Solutions (TAL), a wholly-owned subsidiary, to TASL at an enterprise value of Rs 625 crore. The Board of Directors of the Company at their meeting held on May 3, 2018, have approved the same.

Tata Motors is India’s largest automobile company. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand, South Africa and Indonesia. Among them is Jaguar Land Rover, the business comprising the two iconic British brands.