In a move to consolidate all defence related business under one banner, Tata Motors Ltd (TML) sold its defense and aerospace portfolio to Tata Advanced Systems. TML board has approved the sale of its defense business to group entity Tata Advanced Systems Limited (TASL). This will not include the pure civilian vehicles which will continue to be with TML. The Board has also approved the sale of its shareholding in its wholly owned subsidiary, TAL Manufacturing Solutions Ltd (TAL) to TASL at an enterprise value of Rs 625 crores. As a condition precedent, Tata Motors will acquire the non-aerospace business from TAL at a value of Rs 10 lakhs. The move is in line with Tata Motor’s plan to drive Turnaround 2.0, take necessary steps to further its defense business by leveraging the scale and strengths of the unified aerospace and defense entity at the Group level, while monetising its non-core assets to reduce net-debt.
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