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| Exchange Disseminated Time | Vinyl Chemicals India Ltd has informed BSE that with reference to the earlier announcement dated March 21, 2007, the Company had conveyed that the Board of Directors of the company had approved, in principle, the Demerger of the manufacturing unit at Mahad into Pidilite Industries Ltd.
At that Board Meeting, the Company had appointed an implementation Committee consisting of some of the Directors with a view to carrying forward the process, formalities, etc. required for such Demerger. That Committee appointed Valuers for recommending a fair ratio for allotment of shares pursuant to such Demerger as also appointed Law Firms, etc. to deal with the matter expeditiously.
Since then, the Valuers have submitted their Report recommending such ratio. Also, the draft Scheme of Demerger has been prepared. At a joint meeting of the two implementation Committees of the Company and Pidilite Industries Ltd, followed by the Joint Board Meeting of these two Companies, the Report of Valuation as also the draft Scheme of Demerger have been, after consideration, approved.
Therefore, this is, the recommendation as to the ratio of allotment submitted by the Valuers is as under:
- For every 12 Equity Shares in the Company, 1 Equity Share in Pidilite Industries Ltd (fractional resultant number being appropriately rounded up or ignored depending on the fraction being respectively more than half or less than half) treated as fully paid.
- In so far as it relates to "small shareholders" of the Company, (a small shareholder means a Member holding less than 501 Equity Shares) the Scheme provides for an option for such small shareholder being allotted 1 (one) 6% Cumulative Redeemable of Preference Share in Pidilite Industries Ltd of Rs 10/- each treated as fully paid for every Equity share held by a small shareholder in the Company. |
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