TVS Emerald to acquire Radial Phase II, III IT Parks for ₹576 crore

TVS Emerald, a subsidiary of TVS Holdings Ltd (formerly known as Sundaram-Clayton Ltd), will acquire Radial (Phase II) IT Park Pvt Ltd and Radial (Phase III) IT Park Pvt Ltd for a total consideration of ₹576 crore.

TVS Emerald will acquire 43.59 lakh equity shares and 7.25 lakh compulsorily convertible debentures, constituting 100 per cent of the issued and paid-up share capital of Radial (Phase II) IT Park Pvt Ltd for a total consideration of ₹234 crore.

It will acquire 55.06 lakh equity shares and 10 lakh compulsorily convertible debentures, constituting 100 per cent of the issued and paid-up share capital of Radial Phase III for a consideration of ₹342 crore, according to a TVS Holdings filing with the National Stock Exchange.

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It is expected that the acquisition of both will enable TVS Emerald (formerly known as Emerald Haven Realty Ltd) to gain access to new markets, increase market penetration, and add new capabilities to its existing line of business, thereby maximising revenue opportunities, the filing says.

Radial Phase II IT Park is engaged in the business of construction and development. During FY 2023-24, it generated ‘NIL’ turnover with a loss after tax of ₹0.21 crore and had a net worth of ₹86 crore. Similarly, Radial Phase III IT Park, also in the construction and development business, generated ‘NIL’ turnover with a loss after tax of ₹0.37 crore and had a net worth of ₹108.60 crore.

Radial Phase II IT Park is engaged in the business of construction and development. During FY 2023-24, it generated NIL turnover, reported a loss after tax of ₹0.21 crore, and had a net worth of ₹86 crore. Similarly, Radial Phase III IT Park, also in the construction and development business, generated NIL turnover during FY 2023-24, reported a loss after tax of ₹0.37 crore, and had a net worth of ₹108.60 crore.

TVS Emerald signed two Share Purchase Agreements (SPAs) on December 17 with two unrelated companies for the acquisition of 100 per cent of the equity shares and compulsorily Convertible Debentures of the target companies from their sellers.

After completion of the proposed transaction, both target companies will become wholly owned subsidiaries of TVS Emerald and, consequently, step-down subsidiaries of the parent company, according to the filing.

The share price of TVS Holdings on the NSE closed at ₹11,200, down by ₹2.50 or 0.02 per cent.