TVS Motor slumps over 6% as two-wheeler major to buy stake in Swiss e-bike firm

NEW DELHI – Shares of TVS Motor Company plummeted 6.5 per cent in early trade on Friday as investors did not welcome the two-wheeler major’s move to acquire a 75 per cent stake in Switzerland's largest e-bike player, Swiss E-Mobility Group AG (SEMG), for $100 million.

The acquisition reaffirms TVS’s commitment to expanding operations in Europe through a portfolio of premium and technology leading brands, it said in a statement.

The counter fell to a low of Rs 588.60 as against Rs 629.85 at the previous close on the National Stock Exchange.

“TVS Motor has always been committed to sustainability and has been investing in electric vehicles for over 10 years. The increasing global focus on the environment and personal well-being is rapidly accelerating demand for newer mobility solutions, and TVS Motor is investing to drive this change,” TVS Motor Company Chairman Venu Srinivasan was quoted as saying in reports.

Reports quoted SEMG’s Chairman designate Ralf Speth as saying that the Swiss firm complements TVS Motors' acquisitions of Norton Motorcycles and EGO Movement. He also said that the acquisition would help strengthen the firm's commitment to environmental sustainability.

The acquisition has been made in an all-cash deal through TVS Motor’s Singapore Subsidiary -- TVS Motor (Singapore) Pte Ltd, reports said.

SEMG, one of the leading providers of e-mobility solutions within the DACH region, operates the largest pure-play e-bike retail chain M-way in Switzerland with close to $100 million in revenue, reports added.