The Hindu Business Line : Khaitans rejig holdings in 3 group cos

Share transfers
Approximately 10-15 crore shares of the three companies were transferred from one firm to another, with a three-day prior notice given at the respective stock exchanges. "All are inter-se transfers. We went by the rules and duly informed the stock exchanges whenever required," said sources.

Kolkata , April 4

The city-based Khaitans of the Rs 2,000-crore BM Khaitan Group are restructuring their stakes in three group companies.

The companies are McLeod Russel India Ltd, Kilburn Engineering Ltd and Williamson Magor Financial Services Ltd. Share transfers from one holding firm to another have been reported over the past few days.

Sources in the group said the exercise was aimed at clearing inter-corporate receivables and payables. The changes are in accordance with earlier loans given by one firm to another.

It was clarified that the promoters were not changing their stake and their holdings in the three companies remain unchanged. "All these are no long term holdings of the promoters and it would remain as it is," sources said.

According to sources, approximately 10-15 crore shares of the three companies were transferred from one firm to another, with a three-day prior notice given at the respective stock exchanges.

"All are inter-se transfers. We went by the rules and duly informed the stock exchanges whenever required," sources said.

The sources further clarified that the transfers were completed in the last financial year, 2005-06, because the companies wanted to avail themselves of capital gains tax.

"According to the Union Budget proposal, in the current financial year 2006-07, minimum alternate tax or MAT would be applicable, so the process was completed in the last fiscal," sources said.

McLeod Russel India, which is the world's largest tea producing company, is the second largest money-earner in the group. As on December 31, 2005, the Khaitans held 52.62 per cent share in it.

In Williamson Magor Financial Services their holding is 65.16 per cent (as on December 31, 2005) and 56.97 per cent in the Mumbai-based Kilburn Engineering (as on September 30, 2005).

The investment firms involved in the transactions are United Machine Co Ltd, Ichamati Investments Pvt Ltd and Nitya Holdings & Properties among others.

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