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| Cement biz consolidation to complete by fiscal end: Grasim |
| Press Trust of India / Mumbai Oct 06, 2009, 21:11 IST |
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Aditya Birla Group company Grasim Industries today said the consolidation of its cement businesses would take six months and the company expects the restructuring to be complete by the end of the current fiscal.
Last week, Grasim Industries said it would consolidate its cement businesses by merging Grasim cement with UltraTech.
In a presentation made to the investors, Grasim Industries said the expected timeline for completion of business restructuring is fourth quarter of FY10.
The appointed date of the said demerger would be October 1, 2009, it added.
The group, which had acquired UltraTech from engineering giant L&T in 2004, planned to hive off Grasim cement into Samruddhi, a wholly-owned subsidiary of Grasim Industries. The demerged entity would be listed and merged with UltraTech.
Under the scheme of arrangement, Grasim shareholders would receive one equity share of Rs five each of Samruddhi for each equity share held in Grasim.
"Even after restructuring, economic ownership of Grasim cement division would remain unchanged with Grasim's shareholders," the presentation noted.
Post the merger (Samruddhi and UltraTech), Grasim's holding in the consolidated entity would be somewhere between 55 per cent and 65 per cent. Grasim shareholders would hold 35 per cent in Samruddhi post demerger.
Shares of Grasim closed at Rs 2,511.95, up 0.11 per cent on the BSE.
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