Sical Logistics clarifies on news item regarding sale of Palm oil business

With reference to the news item appearing in a leading web Portal titled "Ruchi Soya group close to buying the Palm oil business of Sical Logistics", Sical Logistics Ltd has clarified to BSE that the Company had obtained shareholders approval on January 06, 2006, to hive off its various units including the palm oil division to enable the Company to concentrate on its core business of Logistics. Accordingly, the Company has been looking for prospective buyers for the oil palm unit.

A 100% subsidiary of the Company under the name Mac Oil Palm Ltd was incorporated on February 10, 2006 for transferring the palm oil business.

To unlock the real value in the Palm Oil Business, it was decided by the Company to demerge the same into Mac Oil Palm Ltd. The Company obtained No objection from the Stock Exchange for the Scheme of Arrangement (Demerger) dated July 26, 2006, to demerge the Palm Oil Business before filing the Company application and petitions with the Hon'ble High Court of Madras.

Subsequently, the Hon'ble High Court of Madras vide its Order dated January 12, 2007 sanctioned the Scheme of Arrangement (Demerger) between the Company and Mac Oil Palm Ltd after its shareholders approved the Scheme of demerger. The Scheme became effective on February 05, 2007, when the same was filed with the ROC.

The Company has concluded the transaction today on the sale of the shares in Mac Oil Palm Ltd to the Ruchi Group.

Source : Equity Bulls

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