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Kinetic Motor Company Ltd to merge with Kinetic Engineering Ltd
Written by Vijay   
Saturday, 10 December 2011
Mumbai: The boards of directors of Kinetic Engineering Ltd (KEL) and Kinetic Motor Company Ltd (KMCL) have approved a scheme of merger of Kinetic Motor Company Limited (KMCL) with Kinetic Engineering Limited (KEL). An exchange ratio of 7.75 : 1 was approved for the equity shares of KMCL and KEL.

Sulajja Firodia Motwani, a director of Kinetic Engineering Ltd, was appointed to the executive position of Vice-Chairperson. This is part of the restructuring at the Kinetic Group, where Kinetic Engineering was reorganised to focus on automotive systems and components business, especially power trains.

The company will seek consent of the FCCB holders, to an extension of the existing term of the FCCBs by one year, upto Feb, 2014, subject to the approval of RBI.

After the amalgamation the auto systems business and investment business (KMCL holds a 20 per cent stake in Mahindra Two-Wheeler Ltd) will come under one entity.

The Board also approved the delisting of its equity shares from the Pune Stock Exchange Limited.

The stake held by the promoters in KEL will be diluted from 57.49 per cent to 52.85 per cent.

 
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