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Exchange Disseminated Time | Jayaswal Neco Industries Ltd (JNIL) has informed BSE that the Company has issued a Press Release on the Scheme of Arrangements approved by the Board of Directors at its Meeting held on November 19, 2008.
Press Release:
"The Board of Directors of JNIL at its meeting held on November 19, 2008, approved the Merger of Inertia Iron and Steel Pvt. Ltd (IISIPL) with JNIL from March 31, 2008 as the Appointed Date for Merger. IISIPL has 0.8 million TPA Sinter Plants, 0.4 million TPA Steel Melt Shop and 0.4 million TPA of Long Product Rolling Mill for Alloy Steel.
The Board has also approved Merger of 350 TPD Sponge Iron Plant and 15 MW Power Plant of Abhijeet Infrastructure Ltd (AIL) and 500 TDP Sponge Iron Plant and 12 MW Power Plant of Corporate Ispat Alloys Ltd (CIAL) from April 01, 2008 as the Appointed Date for the Mergers. All these facilities of IISIPL, AIL and CIAL are located at and adjacent to the Steel Plant Division of the Company at Siltara near Raipur.
The Board has approved the aforesaid schemes of arrangements subject to statutory clearances and requisite approvals.
On implementation of the aforesaid Schemes of Arrangement, JNIL would have capacities of one million ton of Iron making and around 0.4 million ton Finished Alloy Steel Making with. 42.5 MW Waste Heat and Thermal Power Plants. The Company would become a fully integrated steel player with significant improvement in its Net Worth and capacity to implement further Cost reduction on and Value addition projects.
Post merger, the Company would have around Rs 1500 crores of Gross Fixed Assets base and more than Rs 600 crores of Net Worth. The projected Turnover for the year 2009-10 would be around Rs 2500 crores.
The Fair value, of JNIL Equity Share for the purpose of issue of shares to the shareholders of IISIPL, AIL and CIAL as purchase consideration under the aforesaid Schemes of Arrangement has been assessed by an independent valuer at Rs 35.15 share as against the current market. price of around Rs 12 per share.
On implementation of the Schemes as proposed, the Promoters' shareholding in the JNIL stands increased from 49% as at present to about 75% of the enlarged capital." |
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