Metrochem Industries enters into agreement with Huntsmah Investments (Netherlands) B.V.

Metrochem Industries Ltd has announced that the Board of Directors of the Company at its meeting held on June 28, 2007, has approved entering into a Master Agreement with Huntsmah Investments (Netherlands) B.V. The said agreement provides for transfer by de-merger of Vadodara unit of Company as going concern to M/s. Baroda Textile Effects Ltd, a subsidiary of the Company and consequent issue of shares to the Company and payment of other consideration.

The Board has also approved the de-merger of Vadodara unit to be transferred to Baroda Textile Effects Ltd, a subsidiary of the Company as going concern with effect from January 01, 2008 (appointed date) and to seek necessary approval from Hon'ble High Court of Gujarat at Ahmedabad.

On de-merger being approved by Hon'ble High Court of Gujarat at Ahmedabad, Huntsman Investments (Netherlands) B.V. has agreed to purchase the entire shareholding in Baroda Textile Effects Ltd, Subsidiary of the Company.

The stock was trading at Rs.69.30, up by Rs.2 or 2.97%. The stock hit an intraday high of Rs.70 and low of Rs.66.25. The total traded quantity was 14553 compared to 2 week average of 12707.

Source : Equity Bulls

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