Gabriel India sell its Mumbai property for Rs.85 Crores, to demerge engine bearings division

Gabriel India Ltd has announced that the Board of Directors of the Company at its meeting held on September 19, 2006, inter alia, has approved the following:

1. Sale of its Property situated at Mumbai for a total consideration of Rs 850 Mill. As part of the arrangement, a portion of this property will be licensed to the Company for its use, for an agreed term.

2. The Board has also approved the Demerger of the Engine Bearings Division from the Company through a vertical demerger process as per the provisions of the Companies Act, 1956. The Scheme of Arrangement will be filed with the stock exchanges in due course of time and will be subject to the necessary regulatory approvals including approval of the Hon'ble High Court of Judicature at Bombay. Federal-Mogul Corporation , USA which holds 5.146% of equity in the Company has agreed to be the majority partner in the new Demerged Engine Bearings Company through a preferential allotment of shares, subsequent to the Demerger by bringing in additional funds subject to certain stipulations.

Source : Equity Bulls

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