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| Exchange Disseminated Time | Balkrishna Industries Ltd has informed BSE that the Board of Directors of the Company at its meeting held on February 14, 2013, inter alia, has approved in-principle, a proposal to restructure / reorganize the Paper and Synthetics businesses of the Company owned by its wholly owned subsidiaries namely Balkrishna Paper Mills Ltd and Balkrishna Synthetics Ltd respectively.
These businesses have different risks/rewards and are not related to the core business of the Company. It is proposed that these businesses be demerged in to separate resulting companies through a scheme of arrangement u/s 391 to 394 of the Companies Act, 1956. Such restructuring of the businesses will help the Company to streamline the operations and ownership structure, provide shareholders with direct ownership of the Paper and Synthetics businesses thereby unlocking value for the shareholders and attract the requisite kind of investors for each of its businesses.
The Board has authorized some directors and officers of the Company to obtain required professional advice in relation to the proposed restructuring or reorganization, to take all necessary steps in relation thereto, and prepare and present a draft scheme of arrangement and all related documents for the consideration of and approval by the Board at a later date. |
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