TVS Motor’s Singapore arm increases stake in German firm Killwatt to 49%

TVS Motor Company Ltd shares dropped on Tuesday a day after the two-wheeler major announced raising shareholding to 49% in German electric auto component manufacturer Killwatt.

TVS Motor shares opened higher but later succumbed to profit-taking and hit a low of ₹2,133.8 apiece on NSE, down by 1.3%. More than 2.26 lakh shares traded on the exchange in morning deals.

In a filing to the stock exchanges, the two-wheeler major said its Singapore-based arm has raised the shareholding in Killwatt to 49% from 39% earlier for Euro 4 million.

Killwatt is a privately held company based in Tirschenreuth, Germany. Its business comprises design, development, manufacture, and sale and distribution of products and components for electric two-wheeler vehicles.

TVS Motor (Singapore) Pte Ltd will acquire 8,000 equity shares in Killwatt GmbH at a price of EUR 500 per share. The shareholding will rise from 39.28% to 49% following the issue of new shares, TVS Motor informed the stock exchanges. The deal is expected to be completed by March 11, 2024.

As per the agreement, a sum of EUR 2 million will be paid on or before March 4 and the rest of the amount will be paid at a later date, subject to the completion of a specific pre-agreed milestone by Killwatt GmbH.

TVS Motor said that the acquisition is aligned with its vision of becoming a leading player in the e-personal mobility space, and it complements our other recent acquisitions.

TVS Motor Company Limited considers Killwatt as a long-term partner to establish a strong presence in the e-mobility business, the company stated.

Yesterday, TVS Motor also announced that its TVS HLX line of two-wheelers has crossed the milestone of 3.5 million customers in international markets. The TVS HLX two-wheelers are available in 50 countries across Latin America, Africa and Asia.

TVS shares were trading 1.09% lower at ₹2,138.5 apiece on NSE at 10.34 am.