The Board of Directors of Amforge Industries Ltd (Amforge) and Mahindra Automotive Steels Private Ltd (MASPL) has considered the proposal to demerge and merge the same into MASPL, the forging undertaking of Amforge at Chakan, subject to receipt of necessary approvals, including the High Court, Bombay, giving effect to the Scheme of Arrangement. The Board of Directors of Amforge and MASPL are known to have approved the draft of the Scheme recently and also accepted the valuation report submitted by the valuers and chartered accountants. As a result of the Scheme being sanctioned, Amforge shareholders will hold approximately 52.89 per cent of equity of MASPL and the remainder stake of approximately 47.11 per cent would be held by M&M. The equity shares of MASPL are expected to be listed on the Mumbai Stock Exchange, where the existing shares of Amforge are listed. In accordance with the proposed Scheme, the book value of the fixed assets of the undertaking transferred to MASPL is approximately Rs. 34 crores and the book value of the net current assets is approximately Rs 21 crores. As part of the Scheme, MASPL would assume debt of approximately Rs 81 crores and provide to Amforge guarantee of approximately Rs 8 crores.
Posted On : 8/22/2005 4:01:42 PM