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Our Bureau

New Delhi, Sept. 20

Gabriel India Ltd has decided to sell its property situated at Mulund in Mumbai for a consideration of Rs 85 crore. As part of the arrangement, a portion of this property will be licensed to the company for its use for an agreed term. At a board meeting, the company has also decided to demerge its Engine Bearings division from its main line of Ride Control Products.

The proposed demerger, which will be subject to the necessary regulatory approvals, will be a vertical demerger by way of a scheme of arrangement under the Companies Act, 1956. Federal-Mogul Corporation of the US, which was the original collaborator for Engine Bearings and currently holding 5.146 per cent of the equity holding in Gabriel India, has agreed to take up a majority position in the demerged Engine Bearings entity.

The entire process of demerger is expected to be completed within six to seven months.

More Stories on : Restructuring | Automobile Components

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