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Chennai May 14 Sundaram-Clayton Ltd will transfer its brake business to a wholly owned subsidiary Wabco-TVS (India) Ltd, according to information provided by Sundaram-Clayton to the stock exchange.

The business as on January 1, 2007, will be transferred after statutory clearances.

The non-brakes business and investments will remain with the demerged company, Sundaram-Clayton.

Under the demerger scheme the share capital of Sundaram-Clayton and Wabco-TVS will be reorganised by distributing the paid up equity share capital equally between them. The face value of each equity share of Sundaram-Clayton will be reduced to Rs 5 a share from the present Rs 10.

It is also proposed to issue one equity share of Rs 5 each fully paid up in Wabco-TVS for every Rs 5 share in the demerged company once the scheme takes effect, the announcement said.

The `inter se' transfer of shares between the promoters, TVS group and Clayton Dewandre Holdings Ltd of the Wabco group will be done within two years of listing the equity shares of Wabco-TVS. Clayton Dewandre will hold the majority control and management in the new company. The TVS group will hold the majority control and management in Sundaram-Clayton.

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