TVS Motor is having a volatile run today. Opening 2% higher at Rs.642.80, it saw profit booking push down the stock to Rs.585.20, an over 7% decline and is now trading in the red at Rs.609 levels.
The stock reacted positively to the news that it has acquired Switzerland’s leading electric bike maker Swiss E-Mobility Group (SEMG). This is in line with the company’s vision of becoming a leading player in the e-personal mobility space and a growth driver in Europe and other developed markets.
This is an all-cash deal, wherein TVS picked up about 75% in SEMG, which has been valued at $100 million.
SEMG has four main e-bike brands Cilo, Simpel, Allegro, and Zenith and have a very strong Swiss heritage and come in different segments of commuting. SEMG is now focusing on Germany and Switzerland.
This is the company’s second acquisition in Switzerland – in Oct it had acquired 80% in Swiss-based e-bike company EGO Movement.