Balkrishna Industries Board approves scheme of arrangement

Balkrishna Industries Ltd has announced that the Board of Directors of the Company at its meeting held on June 04, 2007 inter alia, has considered and approved the Scheme of Arrangement ('Scheme') pursuant to section 391 to 394 and other applicable provisions of the Companies Act, 1956 for transfer of its Paper and Textile Business of the Company to its wholly owned subsidiaries, interalia Balkrishna Paper Mills Ltd ("BPML") and Balkrishna Synthetics Ltd ("BSL") respectively.

- The paper and Textile Business of the Company will be transferred to BPML and BSL respectively on a going concern basis.

- The Appointed Date for the Scheme is April 01, 2007.

- Post the transfer of paper and textiles business by the Company, BPML and BSL would continue to remain 100% subsidiaries of the Company and their results would be consolidated along with the Company's results.

- The Scheme is subject to all requisite consents, approvals of the requisite majority of the shareholders, the Hon'ble High Court of Judicature at Bombay, concerned Stock Exchanges, the permission or approval of any other statutory or regulatory authorities, which by law may be necessary for the implementation of the Scheme.

The Board has approved the above restructuring after considering the recommendation of KPMG India Pvt Ltd.

- The company has, during the year, declared Interim Dividends totaling Rs 10.50 (105%) per equity share of Rs 10/- each. The cash outgo on account of Interim Dividends and Dividend Tax was Rs 23.15 crores. The same is treated as final dividend.

Source : Equity Bulls

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