Tata Motors on Thursday issued clarifications regarding media reports about the passenger and commercial vehicle businesses of the firm. A report by The Economic Times earlier stated that Tata Sons is going to create a holding company for Tata Motors to hold its PV and commercial vehicle businesses that were being demerged and registered as two individual entities.
The company refuted the claims and clarified that there are no plans to to develop a new firm to house these two businesses. It added that the restructuring strategy has been misrepresented in the media.
The company clarified that the demerger will be done via a composite scheme of arrangements which will be approved by the NCLT, reported The Economic Times. The process for the same is currently underway.
Further, the firm termed the media reports as ‘factually inaccurate and misleading’. “Appropriate notifications have been duly filed with the stock exchanges and are in public domain. It is to be noted, that there is no reference to any holding company in the scheme or the notifications filed,” the company said.
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“At the outset, the Company would like to inform that the aforesaid news article is factually inaccurate and misleading. A Media Statement clarifying the factual position is enclosed herewith, the content of which is self-explanatory. This is for information of the Exchange and the Members,” it said via a filing.
The earlier media report cited sources and said Tata Group Chairman, N Chandrasekaran, will act as the chairman of this holding company while other major executives will be on the board.
“PB Balaji, Tata Motors’ chief financial officer credited with the automobile business’ successful restructuring, may most likely get a leadership role in the passenger vehicle (PV) entity which has more ambitious plans with its electric vehicle business,” the report noted.
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