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Our Bureau

Chennai, Aug. 20 The Rane group on Monday announced a restructuring plan to eliminate cross holdings and to bring all the entities of the group under one holding company — Rane Holdings Ltd.

The manufacturing operations of Rane Engine Valves and Rane Brake Linings are to be spun off into separate companies. The non-manufacturing operations (investments) of the two companies are to be merged with Rane Holdings Ltd.

The exchange ratio is: For every 100 shares in Rane Brake, a shareholder of the company will get 100 shares of the new manufacturing company plus 75 shares of Rane Holdings Ltd.

Similarly, for every 100 shares of Rane Engine Valve, a shareholder will get 100 shares of the new manufacturing company and 56 shares of Rane Holdings.

In the process, the promoters’ stake in Rane Holdings Ltd will come down to about 50 per cent from about 70 per cent now, Mr L. Ganesh, Chairman, Rane Group, told a press conference here on Monday.

This is the second and final phase of restructuring — the first was done in April 2004. After this exercise is over, Rane Investments Ltd, which holds the group’s stake in two equal joint ventures with foreign collaborators, will be merged with Rane Holdings Ltd, Mr Ganesh said.

More Stories on : Restructuring | Automobile Components

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