Virat Crane announces Demerger

Virat Crane Industries Ltd has announced that the Board of Directors of the Company at its meeting held on July 05, 2007, inter alia, has considered and accorded the following:

1. The Board has decided and consented for the De-Merger of its Infrastructure Facilities and Projects into a Separate Company namely Crane Infrastructure Ltd, The De-merged Entity which will encompass the infrastructure projects and infrastructure facilities, has been valued at Rs 25 crores.

2. The Board has decided to issue 1 (one) equity shares of Rs 10/- each in the Demerged Entity to all the shareholders of the Company at 'no - cost under the de-merger scheme'.

The new demerged entity namely Crane Infrastructure Ltd will have a capital of Rs 7.23 crores post demerger.

3. The Board has decided to Merge / amalgamate its 51% owned subsidiary M/s. Durga Dairy Ltd with itself. The residual stake's valuation (i.e. the value of 49% stake holder's equity) has been assessed and approved at Rs 19.60 crores.

The scheme of Merger and Demerger are devised by M/s. Rajesh Shah & Co, Legal Consultants and M/s. Firstcall India Equity Advisors Pvt Ltd, Mumbai, the Advisors for the Restructuring.

Source : Equity Bulls

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