The Hindu Business Line : RPG group cos merge into KEC International

KEC International Ltd, an RPG group company with global footprint in power transmission infrastructure business, announced on Monday the merger of group companies RPG Transmission Ltd and National Information Technologies Ltd (NITEL) into KEC International.

The investment division of KEC International would also be demerged into a new company, which would be listed on the exchange.

RPG Transmission is into power transmission and railway electrification business in South Asia and NITEL carries out telecom infrastructure business in the country.

The board of KEC approved the merger and four shares of Rs 10 each of the company shall be allotted to the shareholders of RPG Transmission for every nine shares of Rs 10 each held by the shareholders.

Plus, one zero-coupon redeemable preference share of face value of Rs 100 shall be allotted to the preference shareholders of RPG Transmission for every one zero-coupon redeemable preference share of Rs 100 each held by the shareholders.

The shareholders of NITEL will receive two shares of Rs 10 each of the company for every 25 shares of Re 1 each of NITEL.

Mr Ramesh Chandak, Managing Director of KEC, speaking to the media said that the merger would bring about operating cost synergies. The three companies have complementary assets and skills and the after the merger it will allow KEC to lower costs and enhance delivery. The combined entity would have the largest tower manufacturing capacity in the world, at 1.40 lakh tonnes per annum, he said.

More Stories on : Restructuring | Mergers & Acquisitions | Electrical Goods

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