Mahindra Forgings Board approves scheme of amalgamation

Mahindra Forgings Ltd has announced that the Board of Directors of the Company at its meeting held on June 05, 2007, has considered & approved the Scheme of Amalgamation envisaging, inter alia, merger of the Mahindra Stokes Holding Company Ltd (MSHCL), Mahindra Forgings Overseas Ltd (MFOL) and Mahindra Forgings Mauritius Ltd (MFML) with the Company with effect from April 01, 2007.

The Board of Directors also accepted the Joint Valuation Report submitted by the valuers viz. Messrs. N M Raiji & Co., Chartered Accountants and Messrs. Dalal & Shah, Chartered Accountants, recommending the share swap ratio for the Scheme as follows:

a. To the equity shareholders of MSHCL:

20 equity shares of Rs 10/ each fully paid up of the Company to be issued and allotted at par for every 103 equity shares of Rs 10/- each fully paid up in MSHCL.

b. To the equity shareholders of MFOL:

20 equity shares of Rs 10/- each fully paid up of the Company to be issued and allotted at par for every 49 equity shares of Euro 1 each fully paid up in MFOL.

c. To the equity shareholders of MFML:

20 equity shares of Rs 10/- each fully paid up of the Company to be issued and allotted at par for every 73 equity shares of Euro 1 each fully paid up in MFML.

The Board of Directors also granted approval for making of applications to Bombay Stock Exchange Ltd as necessary and to the Honourable High Court of Judicature at Bombay for an Order sanctioning the Scheme.

Further, the proposed Scheme is subject to the requisite approval of the shareholders / creditors of the Company, the shareholders / creditors of the transferor Companies, other statutory authorities in the respective jurisdictions and subject to the sanction / confirmation by Honourable High Court of Judicature at Bombay and any other appropriate authority.

Upon the coming into effect of the Scheme resulting shareholding of Mahindra & Mahindra Ltd is expected to be around 60.56%.

Source : Equity Bulls

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