TVS Srichakra Ltd, the Madurai-based tyre manufacturer, has executed an Assignment and Assumption Agreement on Friday with the US-based Super Grip Corporation, (Wholly owned subsidiary of the Company) & Bristol Motor Speedway, LLC, US, to assume all rights, duties and obligations of Super Grip Corporation. This is under the Suite License Agreement dated February 16, 2024 and Sponsorship Agreement dated April 5 2024, originally executed by Super Grip Corporation, US, with Bristol Motor Speedway, LLC, US.
This will enhance the visibility and reach of the company’s brands in global markets, says a company announcement to the stock exchanges.
In consideration of the rights granted by Bristol Motor Speedway, to the company through this assignment, TVS Srichakra will pay in tranches, $10,33,250 for the remaining years. No monetary consideration is payable to Super Grip Corporation, USA, for this assignment
While it will be 100 per cent shareholding in Super Grip Corporation, there would be nil shareholding in Bristol Motor Speedway, LLC, US, the announcement said.
The duration of the agreement is until December 31, 2028.
Bristol Motor Speedway is a third party and unrelated to the company, promoter/promoter group/ group companies. Super Grip Corporation is a wholly owned subsidiary of the Company. The assignment transaction between Super Grip Corporation, USA and the Company alone qualifies as a Related Party Transaction and the same is done at arm’s length basis, says the announcement.