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Home arrow Mergers and Acquisitions arrow Amalgamation of Birla Machining & Toolings and Birla Precision Technologies
Amalgamation of Birla Machining & Toolings and Birla Precision Technologies Print E-mail
Written by Vijay   
Friday, 01 April 2011
Mumbai: Yash Birla Group Companies - Birla Machining & Toolings Ltd (Formerly Dagger Forst Tools Ltd) and Birla Precision Technologies Ltd plan to realign their businesses through amalgamation.

The Board of Directors of both companies, at meetings held on March 31, 2011, approved the amalgamation of Birla Machining & Toolings Ltd with Birla Precision Technologies Ltd.

Birla Machining & Toolings Ltd (Formerly Dagger Forst Tools Ltd) is engaged in the business of Machining of Castings and Cutting Tools.  Motherson Advanced Tooling Solutions Limited (MATS), a subsidiary of Samvardhana Motherson Group had acquired the gear cutting tool business of Dagger Forst Tools Ltd. With the sale and transfer of undertakings, the Board of Directors felt that the Company would be able to diversify to more profit making sectors in the same line of business including machining of castings (which Is already under implementation).

The sale proceeds were proposed to be utilized to pay the long term/short term debts of the Company and make the Company debt-free.

Dagger Forst Tools Ltd's facilities in Aurangabad, Gujarat and Thane were transferred for total consideration of Rs 51,75,00,000 to Motherson Advanced Tooling Solutions Limited.

Birla Precision Technologies Ltd is engaged in the business of Machining of Precision Components, manufacturing of high speed steel cutting tools, precision AT3 Class tool holders, HSK tooling, Expanding Mandrels and Sleeves besides advanced products like hydro grip and shrink fit CNC Toolings. For the 9 months ended 31-12-2010 The company registered a Total income of 7785.40 lakhs (Rs 1,933.98 Lakhs from the Tool holders segment and Rs 5,851.42 Lakhs from the Tools segment)

At it's Aurangabad Project, Birla Machining & Toolings Ltd, has invested s. 104.85 lacs towards buildings and Rs 845.25 Lacs towards plant, machinery and electrical. The remaining Rs. 1,168.30 Lacs of the public issue is used for funding the company's working capital requirement and for inter corporate deposit given.

The Scheme of Arrangement is subject to the approval of shareholders of Birla Precision Technologies Ltd & Birla Machining & Toolings Ltd, High Court of Judicature at Bombay, Stock Exchange and other regulatory authorities.

 
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