ABC Bearings was locked in upper circuit for the second straight day, up 20% at Rs 286 on BSE, after the company said that the board has approved the merger with Timken India.
Shareholders of ABC Bearings will get five shares of Timken India for eight shares held, according to the filing to the stock exchanges.
The Scheme is subject to the approval of the shareholders and creditors of ABC Bearings, approval of the regulatory authorities and the sanction of the National Company Law Tribunal (NCLT), the company said in a statement.
The transaction contemplated under the Scheme is expected to close in the quarter ended March 31, 2018, subject to the receipt of all approvals. The transferor company shall stand dissolved without winding up pursuant to the Scheme, it added.
Timken India is a subsidiary of The Timken Company, which is a US-based leading manufacturer of taper roller bearings, which is the also the main product currently being manufactured by the Timken India.
Both the Timken India and ABC Bearings intend to and can achieve larger product portfolio, access new domestic and export markets, increase market share, economies of scale, efficiency, and other related economies through this Amalgamation, the company said.
Till 9:25 am; around 9,326 shares of ABC Bearings have changed hands and there were pending buy orders for 1.61 million shares on BSE.
Timken India was trading 4% higher at Rs 700, after hitting high of Rs 708 in early morning trade.
