Cholamandalam Investment and Finance Co. Ltd. (CIFCL) has entered into a share swap agreement with TVS Supply Chain Solutions Ltd. (TVSSCSL) to sell 30.87% equity shares of its associate firm White Data Systems India Pvt. Ltd. (WDSI) to the latter for consideration other than cash.
Consequently, WDSI will cease to be an associate of CIFCL and two WDSI nominee directors will resign upon completion of action, the investment arm of Murugappa group firm said in a regulatory filing.
On Tuesday, CIFCL board decided to sell 12.76 lakh equity shares of WDSI constituting 30.87% to TVSSCSL. As consideration, CIFCL will be issued 22,35,265 compulsory convertible preference shares of ₹1 each of TVSSCSL. Later, it would be converted into one equity share of ₹1 each.
Right now, CIFCL does not have any existing shareholding in TVSSCSL and vice versa.
