|
| Exchange Disseminated Time | Vardhman Textiles Ltd has informed BSE that the Board of Directors of the Company at its meeting held on July 17, 2010, approved the Scheme of Arrangement and Demerger ("Scheme") between Vardhman Textile Ltd. ("VTEX" or the Company) and Vardhman Special Steels Ltd. ("VSSL"), and their respective shareholders and creditors for the demerger of the Steel Business ("Demerged Undertaking") of VTEX into VSSL w.e.f. January 01, 2011 ("the Appointed Date"). VSSL is a wholly owned subsidiary of the Company.
The Board of Directors of the Company have also approved the share entitlement ratio of 1 (ONE) fully paid equity share in VSSL of face value Rs. 10/- each credited for as fully paid-up for every 5 (FIVE) equity shares of Rs. 10/- each held by such shareholder in the Company, on the basis of the recommendation made by an independent valuer M/s. SSPA & Co. Chartered Accountants. Therefore, in consideration of the demerger, each shareholder of VTEX would additionally receive 1 (one) equity share of Rs. 10/- each in VSSL for every 5 (five) equity share of Rs. 10/- each being held by such shareholder in VTEX without any additional consideration.
Further, pursuant to the Scheme, shares of VSSL will get listed on the Bombay Stock Exchange and the National Stock Exchange.
The Scheme is subject to and conditional upon the requisite approvals being received, including approvals of the stock exchanges, shareholders, creditors and sanction of the Hon'ble jurisdictional High Court pursuant to Sections 391 to 394 of the Companies Act, 1956. KPMG are the external advisors who are advising the Company in this transaction. |
|
|