Mcdowell & Company to amalgamate group companies

Mcdowell & Company Ltd has announced that the Company had proposed a Composite Scheme of Arrangement for amalgamation of Shaw Wallace Distilleries Ltd, Herbertsons Ltd and six other operating companies with the Company and demerger of the investment business of the Company into McDowell India Spirits Ltd. Necessary applications have already been filed into the High Courts of Karnataka and Bombay. In fact, the application filed by the Company before the High Court of Karnataka at Bangalore has already been allowed by the High Court of Karnataka as per its order dated June 23, 2006. The Composite Scheme of Arrangement becomes effective only from the date the other petitions filed before the Karnataka High Court and Bombay High Court are allowed by the respective High Courts.

In addition to the Composite Scheme of Arrangement, referred to hereinabove, the Company had proposed a Scheme of Amalgamation, under which its non-operative overseas wholly owned subsidiaries viz., Asian Opportunities and Investments Ltd in Mauritius and Zelinka Ltd in Cyprus, were to merge with the Company. Due to business needs, the Board of Directors of the Company has decided to withdraw the said Scheme of Amalgamation. The Honble High Court of Karnataka has, by its order dated July 07, 2006 permitted such withdrawal of the Scheme of Amalgamation.

However, Composite Scheme of Arrangement, referred to in para-1 hereinabove, is not being withdrawn and necessary steps are being taken to complete the said Composite Scheme of Arrangement at the earliest.

Source : Equity Bulls

Keywords