Zenith Birla appoints Ernst & Young to advise on hiving off Tools Manufacturing Division

Zenith Birla India Ltd has announced that the Board of Directors of the Company at its meeting held on September 14, 2007, has considered a proposal to Hive Off of Company's Tools Manufacturing Division.

The Board discussed the proposal of De-merger / Hive off of Tools division at length. After having discussion at length, it was decided to obtain detailed study report from an Independent Consultant for the purpose before finalizing any proposal.

The Board than decided to appoint Ernst & Young as the independent consultant and final decision shall be taken only after receiving their recommendation from them on various options such as outright sale, de-merger, hiving off to other subsidiary etc.

The Board also considered the proposal of Merger / Acquisition of Tungabhadra Holdings Pvt Ltd which is also into the manufacturing of Steel Pipes and with its operations at Murbad and Tarapur and having synergy with the Steel Pipes business of Zenith.

The proposal to Hive off Tools Division and Merger / Acquisition of Tungabhadra Holdings Pvt Ltd shall now be taken up in the next Board Meeting for consideration.

The stock closed the day at Rs.43.45, down by Rs.2.45 or 5.34%. The stock hit an intraday high of Rs.48.40 and low of Rs.42.65. The total traded quantity was 354857 compared to 2 week average of 218944.

Source : Equity Bulls

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