Mumbai, May 3 : Automobile major Tata Motors (TML) on Thursday said its Board has approved the sale of the company's defence and aerospace businesses to 'Tata Advanced Systems Limited' (TASL) subject to requisite regulatory and other approvals.
On the sales of the company's defence business to TASL, the automobile giant said: "This will not include the pure civilian vehicles which will continue to be with TML. TML will receive an up front consideration of Rs 100 crore, adjusted for capex incurred and changes in working capital in the intervening period until closure date..."
"... and a deferred consideration of 3 per cent of the revenue generated from identified Specialised Defence Projects for up to 15 years from FY20 subject to a maximum of Rs 1,750 crore."
According to the company, the board also approved the sale of the company's shareholding in its wholly owned subsidiary 'TAL Manufacturing Solutions Ltd' (TAL) to TASL at an enterprise value of Rs 625 crore.
"As a condition precedent, Tata Motors will acquire the non-aerospace business from TAL at a value of Rs 10 lakh," the statement said.