Ceat Ltd Updates on Financial Restructuring

Ceat Ltd has announced that the Board of Directors of the Company at its meeting held on April 23, 2007, has also approved the new phase of Financial Restructuring of the Company, subject to the approval of the shareholders, Banks & FIs. Stock Exchanges and the Hon'ble High Court in Mumbai and other statutory authorities.

The salient features are

i. The Investments Business of the Company would be hived-off to another Company.
ii. The share capital of the Company would he restructured as under
In lien of 100 Company shares held, the existing shareholders will be entitled to:
a. 75 equity shares of Rs 10/- each fully paid up of the Company (existing Company)

and
b. be issued 25 equity shares of New investment Company of Rs 10/- each fully paid up

iii. There will not be any change in the shareholding pattern of the Company (mirror image)

iv. The Promoter's stake remains unaltered.

v. The Company to focus on Tyre Business alone in future.

vi. The restructuring scheme is aimed at unlocking value for the share holders of the Company.

vii. Both Company's shares would he listed at BSE/NSE.

Source : Equity Bulls

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