Ince & Co Singapore represented The Warranty Group (TWG) in its joint venture with TVS Automobile Solutions Limited (TVS). The joint venture company (based in India) will offer extended warranties and related services and solutions throughout India, Bahrain, Kuwait, Saudi Arabia, UAE, Qatar, Bangladesh, and Sri Lanka.
The joint venture company will initially focus on automobile, light truck and 2-wheeler vehicle segments, and then intends to expand quickly into the appliance, technology, electronics and other consumer products categories. Products offered will include a full range of service contracts, extended warranties, limited warranties, and prepaid maintenance programs.
While the knowhow for the business, intellectual property and historical claim data (worldwide) is to be provided by TWG, the regional expertise, customer relationship and administration support is to be provided by TVS. TWG owns 49% and TVS 51% of the issued shares and convertible debentures in the joint venture, with control being exercised equally by the shareholders.
Ince & Co Senior Associate, Kunal Kapoor (pictured above), led the team that advised The Warranty Group. Martin David, Carolyn Chia and Aruno Rajaratnam supported Kunal.
Kunal comments: “This transaction is a milestone deal for TWG who is expanding its presence into the growing Asian market. TVS is a giant in the Indian market with a very strong presence and reputation in the auto sector in Asia. These strengths of TVS combined with TWG’s global expertise and industry leadership provide a complimentary fit and the perfect platform for TWG to rapidly expand their business in the sub-continent and the Middle East. The transaction highlights Ince & Co’s M&A/joint venture and insurance strength/expertise and its ability to lead clients into new sectors of business, and highly complex regulatory markets. This transaction was particularly challenging in view of the complex contractual arrangements, in particular the JV exit mechanisms, international intellectual property and data protection issues, the structuring of neutral tax incidence for both parties and finding solutions around difficult regulatory regimes. We are delighted that we could assist TWG to help them bring this transaction to a successful close.”
John Serafin, Senior Vice President of TWG and Chief Risk Officer of Virginia Surety Company and London General Insurance Company comments: “I have worked for The Warranty Group for 36 years in various roles. However, the assignment in India to oversee our joint venture is my first international position and the company's first joint venture. Kunal Kapoor from Ince & Co provided exceptional guidance and expertise during every step of the transaction. His knowledge, work ethic, competency and availability during the negotiations was the primary driver in the successful completion and closing of our joint venture. Kunal always took the time to explain complicated matters in language that was easy to understand and I knew his first priority was always to protect TWG's interests. After working with Kunal for nine months, I consider him a trusted advisor and a good friend and would not hesitate to recommend Kunal for anything in the future.”
About TWG
Celebrating 50 years of industry leadership, The Warranty Group is one of the world's premier global providers of warranty solutions and related benefits, with operations in more than 30 countries and 1,900 employees. With Virginia Surety Company and London General Insurance as wholly-owned insurance companies, The Warranty Group is a single-source solution that provides underwriting, claims administration, and marketing expertise to some of the world's leading manufacturers, distributors, and retailers of consumer goods including automobiles, homes, consumer appliances, electronics, and furniture, as well as specialty insurance products and services for financial institutions. For more information, visit warrantygroup.com
