Century Plyboards India Ltd to transfer logistics business to subsidiary

The Board of Directors of Century Plyboards (India) Ltd at their meeting held on 2nd November, 2021, has considered and approved, subject to necessary statutory and regulatory approvals, as may be required, Subsidiarisation / transfer of Company's Logistics business comprising of CFS services, as a going concern, by way of slump sale, to a wholly owned subsidiary of the Company, to be incorporated for this purpose.

The lump sum consideration to be received by the Company against Slump Sale of Logistics business comprising of CFS services as a going concern will be approximately ₹52 crore (based on financials as on 30th September, 2021) subject to customary adjustments as on the date of actual transfer, in accordance with the provisions of the BTA and as per advice from tax and legal advisors.

This consideration shall be settled by the Transferee Company through issuance of its equity shares.

In order to provide for the optimum running, growth and development of the Logistics business, the Board of Directors deemed it desirable to transfer the same to a separate entity (WOS) on slump-sale basis. This shall help in (a) providing differentiated focus for the said Logistics business and help it realise its potential; and (b) unlocking business value and enhanced management focus and operational flexibility in each of the businesses. Further, this restructuring would facilitate mutually beneficial strategic alliances for the Logistics business in the future.

Shares of Century Plyboards (India) Limited was last trading in BSE at Rs. 646.10 as compared to the previous close of Rs. 607.55. The total number of shares traded during the day was 31326 in over 1637 trades.

The stock hit an intraday high of Rs. 655.60 and intraday low of 615.00. The net turnover during the day was Rs. 20065672.00.

Source : Equity Bulls

Keywords

CenturyPlyboardsIndiaLimited INE348B01021 CENTURYPLY LogisticsBusiness