German industrial and automotive supplier Schaeffler Group on Wednesday announced a merger of its Indian entities in a bid to simplify its holding structure.
“The Board of Directors of Schaeffler India Limited (formerly FAG Bearings India Limited), INA Bearings India Private Limited and LuK India Private Limited, at their respective meetings held on August 30, 2017, approved the draft Scheme of Amalgamation for the merger of INA India and LuKIndia into Schaeffler India Limited,” the company said in a media statement.
Part of the merger scheme, Schaeffler India will issue 10 equity shares to shareholders of INA India, for every 65 equity shares held and will issue 10 equity shares to shareholders of LuK India, for every 35 equity shares held. At present, the group holds 51.33 per cent stake in Schaeffler India Limited and 100 per cent stake in both INA India and LuK India. With the proposed merger scheme, shareholding of the promoter group in Schaeffler India will be 74.13 per cent. Schaeffler India is listed on the Indian stock exchanges.
“The company will look to unlock synergies at both the cost saving and revenue generation level,” company officials said on Wednesday. The officials did not share details on the monetary quantum for these synergies.
In its press statement, the company said the merged entity will have revenue worth Rs 3,570 crore and nearly 3,000 employees. “On a proforma basis (for 12 months ending Dec 31, 2016) the new entity will have Rs 3,570 crore revenue, 4 plants, one research and development centre and nearly 3,000 employees,” the company said in its statement.
The proposed merger is expected to see completion in twelve months time and is subject to shareholders and regulatory approvals.
Schaeffler India is a manufacturer of Ball and Roller Bearings and maintenance of rolling bearings. INA Bearings and LUK India cater to the automotive segment.
Source: Business-Standard