On April 2, 2024, Tata Technologies informed the stock exchanges that the company had executed a Joint Venture Agreement with BMW Holding B.V., Netherlands (BMW).
Tata Technologies and BMW Holding B.V., Netherlands, entered into a joint venture agreement on Tuesday.
As per the exchange filing, the joint venture will aid the BMW Group in engineering premium products, delivering great digital experiences for its customers and propelling its digital transformation journey. The focus will be on delivering automotive software, including software-defined vehicle (SDV) solutions for its premium vehicles and digital transformation solutions for business IT.
They stated that this collaboration between Tata Technologies and BMW Group represents a shared vision of innovation and excellence in automotive engineering and digital solutions.
The company mentioned significant terms regarding the deal, where they stated, “Tata Technologies will initially incorporate the company as a wholly-owned subsidiary. Once closing conditions (including merger control approval) are met by both the parties, BMW shall invest in the said incorporated company to hold 50% of the post-investment equity share capital in that entity.”
They further added, “From the inception of this joint venture, 100 trained and experienced Tata Technologies professionals will ensure robust and immediate contributions to software projects. Call and Put Option to shareholders, Shareholder Reserved Matters, Deadlock and other standard clauses on the management of the company, governance and administration, and exit have been included in the joint venture agreement.”
Subject to the conditions elaborated, 50% by each partner in the new company that will be incorporated. Also, the company mentioned that BMW should subscribe to 50% of the equity shares in the joint venture company. The issue price will be subject to applicable legislation.
The CEO and MD of Tata Technologies, Warren Harris, said, “Our collaboration with the BMW Group demonstrates our commitment to providing top-tier solutions in automotive software and digital engineering to customers across the world.”
On April 2, 2024, the Tata Technologies share price opened at ₹1,059.50, touching the day’s high at ₹1,077.50, as of 9:56 AM on the NSE.
Tata Technologies Limited offers digital transformation and outsourced engineering services to international manufacturing clients, enabling them to design better products for their customers. It is a subsidiary of Tata Motors Limited.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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