Virat Crane - Press Release
Virat Crane Industries Ltd has informed BSE that the Company has obtained the in-principle approval of the exchange for the Demerger of its real estate / infrastructure division into Crane Infrastructure Ltd and Amalgamation / Merger of Durga Dairy Ltd with M/s. Virat Crane Industries Ltd.
The demerger of real estate / infrastructure division and amalgamation / merger of Durga
Dairy Ltd with the Company will take effect after obtaining the order of Honorable High
Court of Andhra Pradesh, Hyderabad. The Company has initiated the process with reference to the Court Approval.
The demerger scheme envisages a share issuance of 1 shares of Demerged Entity namely Crane Infrastructure Ltd for every 1 share held by the existing shareholders of the Company.
The Merger / Amalgamation of Durga Dairy Ltd encompasses the value add for Virat Crane Industries Ltd. Till the Financial Year 2006-07, the Company as a part and parcel of its investment portfolio has been holding about 51% of Durga Dairy Ltd and it is a subsidiary of the Company. The Company currently gains the consolidated strength in terms of revenues.
Under Amalgamation, the residual stake’s valuation (i.e. the value of 49% stake holder’s equity) has been assessed and approved at Rs 19.60 crores.
Under the Amalgamation of Durga Dairy Ltd with the Company, the Swap Ratio is of 25 shares of M/s. Virat Crane Industries Ltd of Rs 10 paid up each for every 1 share of M/s. Durga Dairy Ltd of Rs 10/- paid up.
The “Appointed Date” has been fixed as April 01, 2007 or such other date as the High court may direct, in the process of obtaining the High Court Approval.
The demerger of real estate / infrastructure division and Merger / Amalgamation of Durga Dairy Ltd with the Company reaffirms the growing importance given by the Company in its focus areas of Food & Dairy Products by showcasing, the Promoters, commitment to enhance the value of all stakeholders by going in for the demerger of the surplus real estate / infrastructure by putting the same under commercial revenue model.
Tags: Virat Crane