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Eicher merges auto arms

Mumbai, Dec. 9: The Eicher group has outlined its plan to merge its automobile businesses under one fold. Eicher Ltd today decided to de-merge its auto and ancillary business with group company Eicher Motors Ltd as part of a restructuring exercise.

Eicher Ltd informed stock exchanges that the board decided on Monday that the current structure of the company and various businesses undertaken needed to be synergised with the business operations of Eicher Motors Ltd.

The restructuring proposal envisages the ‘automobile undertaking’ of the company comprising businesses relating to tractors, two-wheelers, gears and engines to be de-merged into Eicher Motors Ltd.

The merger would result in the issue of two shares of Eicher Motors for every five shares of Eicher Ltd, as determined by the valuation reports submitted by Ernst & Young Pvt Ltd and . M. Raiji & Co.

The Eicher share closed at Rs 101.90, while Eicher Motors’ share closed at Rs 206.95.

Eicher Ltd is the manufacturer of tractors, bikes and spares while Eicher Motors makes commercial vehicles.

The board has further agreed to amalgamate Malbros Investments Ltd (Malbros), a wholly-owned subsidiary of the company engaged in finance and investment activities, with the company after the demerger is effected, thereby combining the investments businesses in the company.

Pursuant to the merger of Malbros with the company, the 16,67,500 equity shares held by Malbros in the company will get cancelled.

The issued, subscribed and paid-up capital of the company shall be reorganised from Rs 18,56,93,740 divided into 1,85,69,374 equity shares of Rs 10 each fully paid up to Rs 11,14,16,240 divided into 1,11,41,624 equity shares of Rs 10 each fully paid up.

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