CRISIL to merge wholly owned subsidiaries with itself, recommends Rs.15 dividend

CRISIL Ltd has announced that the Board of Directors of the Company at its meeting held on February 27, 2007, has transacted the following:

1. After due evaluation and assessment of the merits of restructuring the Indian operations, and with a view to streamline the operations, approved the proposal for merger of CRISIL Research and Information Services Ltd, CRISIL Properties Ltd and Global Data Services of India Ltd, all wholly owned subsidiaries of the Company with the Company. The Board also approved the scheme incorporating the proposed arrangement for merger of the subsidiaries with effect from April 01, 2007 subject to the requisite approvals. No shares will be issued pursuant to the scheme since the entire share capital of the all three subsidiary Companies is held by the Company.

2. Approved the transfer Advisory Business of the Company to CRISIL Market Wire Ltd (a wholly owned subsidiary of the Company) with effect from April 01, 2007, subject to the shareholders approval through postal ballot.

The Company's Advisory Business Division is a leading provider of advisory services in the areas of infrastructure, investment, and risk management in India and abroad. The transfer of the Advisory business into a separate legal entity will be to achieve best practice in firewalling the Ratings and Research activity from the Advisory business.

The proposed transfer would be at a consideration, which will be not lower than the net book value of the Business on the date of transfer.

The company has recommended a dividend of Rs 15 per share having nominal value of Rs 10 each.

Source : Equity Bulls

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