The meeting of Board of Directors of Autoline Idustries Ltd was held on Monday, April 17, 2017 at 5:00 pm (concluded at 11:00 pm on same day) to consider the matter of dispute raised by CJ Holdings North America, LLC ('CJ Holdings') with reference to Stock Purchase Agreement dated December 23, 2014 ('SPA') entered into by the Company with CJ Holdings for selling of its entire holding in its Overseas Subsidiaries i.e. Autoline Butler, Indiana and its step down subsidiaries.
CJ Holdings alleged the accuracy of certain representations and warranties in the SPA and the consummation of the transactions contemplated in the SPA and claimed that it sustained substantial damages. After in depth study of claim and thorough discussion with US Counsel/Attorney of the Company and independent firm of CPA's, the matter was put before the Board meeting of the Company for consideration and the Board deliberated in the matter and it was noted that the Company does not accept any of the allegations of CJ but considering the high likelihood that CJ Holding will recover $ 1.00 million under SPA as indemnification damages cap, high cost of litigating a lawsuit in US, uncertainty of outcome of litigation etc. the Board has approved and accepted settlement of claim for an amount of $ 1.7 million which is to be paid in installments upto June 16, 2018 subject to RBI and other necessary approvals.
The Company has executed settlement agreement on April 18, 2017.
Shares of AUTOLINE INDUSTRIES LTD. was last trading in BSE at Rs.59.35 as compared to the previous close of Rs. 58.7. The total number of shares traded during the day was 22686 in over 159 trades.
The stock hit an intraday high of Rs. 59.35 and intraday low of 55.25. The net turnover during the day was Rs. 1322720.