Lakshmi Auto Components completes its merger with TVS Motor Company
TVS Motor Company Limited (TVS-M) announced the scheme of arrangement between Lakshmi Auto Components Limited (LAC), Sundaram Auto Components Ltd (SACL) and TVS-M was approved by the Hon'ble High court of Madras. The High Court has passed orders sanctioning the scheme and dissolution of LAC.
The Boards of directors of the three companies took on record the court's order in their respective meetings held on April 1, 2004. The court order is being filed with the Registrar of Companies, Tamil Nadu. In terms of the scheme, the assets and liabilities of Rubber and Plastics businesses of LAC will be transferred and vested in SACL retrospectively from 1.4.2003. The only remaining business in LAC i.e., engine components division together with investments LAC has made in SACL will merge with TVS-M retrospectively from 2nd April 2003. Therefore the financial results of TVS-M for the year 2003-04 will include the twelve months performance of engine components business of LAC.
The Board of directors of TVS Motor Company has fixed Friday, the 23rd April 2004 as record date for the purpose of determining the entitlement of shareholders of LAC, who will be allotted shares of TVS-M in the ratio of 10 equity shares of Re 1 each in TVS-M for every 7 equity shares of Rest. 10 each held by them in LAC, which is being dissolved.
Consequently, TVS-M will be allotting in the aggregate 65,42,857 equity shares of Re 1 each to the shareholders of LAC. Arrangements have been made for allotting the fractional entitlement to a Trustee who will sell the same in open market and distribute the proceeds to the eligible shareholders.
The company is also making necessary arrangements to list the new equity shares issued consequent to the scheme of amalgamation in all the three exchanges, where the shares of TVS-M are listed viz. NSE, BSE and Madras Stock Exchange. The new shares are expected to be listed and available for trading within 2 months after allotment.