The Hindu Business Line : Brakes division of SCL hived-off

Chennai, April 7 The brakes division of Sundaram-Clayton Ltd is being spun off into a separate company, WABCO-TVS Ltd, Sundaram-Clayton (SCL) announced today.

As part of the scheme of de-merger, shareholders of SCL will get one share of Rs 5 of WABCO-TVS and one share of Rs 5 in SCL, for each share of Rs 10 that they currently hold in SCL. (WABCO is the US collaborator of SCL and is a world leader in automotive braking products.)

SCL informed the stock exchanges today that subsequent to the demerger, “it is intended that within a period of two years from the date of listing of shares of WABCO-TVS, the majority control and management of SCL will be vested with the TVS Group, while the majority control and management of WABCO-TVS will vest with WABCO.”

The Record Date has been fixed by its board of directors as May 2, to determine the equity shareholders of SCL entitled to receive the equity shares of WABCO-TVS and SCL (after reorganization)."

SCL was established in 1962 between the TVS Group and Clayton Dewandre Holdings Ltd, UK (CDH). CDH was subsequently taken over by American Standard Inc, USA. SCL issued shares to the public in 1983. In the share capital of SCL, the pattern of shareholding is TVS group 40.83 per cent, CDH 39.17 per cent and public 20 per cent. CDH is a part of the WABCO division of American Standard.

SCL is in the business of (a) air assist and full air actuation systems for automotive and non-automotive applications and (b) aluminium die castings, besides holding investments, directly and through its subsidiaries, in TVS Motor Company Ltd., TVS Electronics Ltd and TVS Finance Ltd.

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