Forbes Gokak plans demerger of Textiles Division

Forbes Gokak Ltd has announced that the Committee of Directors in consultation with the advisors has recommended the demerger of the Textiles Division i.e. yarn business (the manufacturing unit of which is located at Gokak Falls, Dist. Belgaum, Karnataka State) and the knitwear business (the manufacturing unit of which is located at Marihal Dist. Belgaum, Karnataka) by way of a Scheme of Arrangement under the provisions of Section 391 to 394 of the Companies Act, 1956 (‘the Act’).

The Board of Directors of the Company at its meeting held on November 28, 2006, has approved the said Scheme of Arrangement consisting of the demerger of the Textiles Division of the Company, with Apri1 01, 2007 as the Appointed Date, into an unlisted Public Company located in the state of Karnataka (Resulting Company), subject to the Scheme of Arrangement receiving such further approvals as may be required including Shareholders and Creditors / Lenders of the Company and a sanction of the Scheme by the High Court(s) under the provisions of Section 391 to 394 of the Act & any other regulatory authority.

Based on the report of the appointed valuers, on the distribution ratio proposed by the Board of Directors of the Company, upon the Scheme being effective, the Shareholders of the Company, on a Record Date to be separately decided by the Board of Directors of the Company in consultation with the Board of Directors of the Resulting Company at an appropriate time, shall receive one share of the Resulting Company comprising of the Textile Division of the Company, for (and not in exchange of) every two shares held by them in the Company.

Source : Equity Bulls

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