Atco board approves demerger, 1:5 stock split

I / London January 20, 2010, 10:17 IST

Atco Corporation board has approved stock split in the ratio of 1:5. Which means that the existing equity shares of Rs 10 each will be subdivided into five equity shares of Rs 2 each.

According to a release issued by Atco to the BSE today, the board has also decided to demerge a few of the company's business activities carried out in India, by transferring these activities into separate subsidiary companies from April 1, 2010.

Under this arrangement the company will hold a minimum 51% of the newly formed equity capital of all four subsidiary companies and remaining equity will be issued to shareholders of the company. In a way the company will be forming four new subsidiaries. The details are as follows:

(a) Business of industrial business supplies into Atcomaart Services Ltd.

(b) Business of application service providing and software development into eDesk Service Ltd.

(c) Business of bottled water into a company to be newly incorporated.

(d) Business of industrial publication into Innovamedia Publication Ltd.