Aditya Birla Nuvo to acquire JV partner NGK Insulators Ltd

Aditya Birla Nuvo Ltd has announced that the Company has a 50:50 joint venture viz., Birla NGK Insulators Pvt Ltd (Birla NGK) with NGK Insulators Ltd, Japan (NGK) for insulator business. The Company alongwith its subsidiary have entered into Share Purchase Agreement with Joint Venture partner pursuant to which all the equity shares held by NGK and its affiliate i.e. Mitsubishi Corporation in Birla NGK will be purchased by the Company and its wholly owned subsidiary company in two stages.

On completion of the said transaction, Birla NGK will cease to be a joint venture company and will become a subsidiary of the Company. The existing marketing agreement, agreement for know-how, patents and technical assistance between Joint Venture partner will also be terminated on completion of the deal, which shall be completed before December, 2006.

Source : Equity Bulls

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