Company news

| Updated on January 19, 2018 Published on January 18, 2016

The board of directors of Mercator on Monday approved the company’s proposal to sell its entire stake in its Singapore subsidiary Mercator Lines (Singapore) Ltd, in order to exit the dry bulk business, the company said in an exchange filing. Mercator owns over 66 per cent in the Singaporean subsidiary, which currently has a debt of ₹1,000 crore. In 2014—15 (April—March), the Singapore-based subsidiary incurred a loss of ₹768 crore, while for the half year-ended September 2015, it posted a loss of ₹136 crore. The parent company has appointed a sole placement agent to identify a prospective investor or buyer for the stake sale in Mercator Lines. The losses of the subsidiary have been adversely affecting Mercator’s consolidated performance. Shares of Mercator crashed 7 per cent\ at 20.30 on the NSE.

Veto Switchgears & Cables has informed the exchanges that its wholly owned subsidiary - Veto Overseas Private FZE, Azman, - has earned AED 23.41 lakh (₹4.3 crore) and had a turnover of AED 233.44 lakh (₹43.02 crore) as on December 31, 2015. Shares of Veto Switchgears edged up 0.75 per cent at ₹107.85 on the NSE.

The board of Sical Logistics has approved a proposal to provide unconditional irrevocable corporate guarantee to the extent of ₹100 crore towards credit facilities being availed by one of its subsidiaries. The board has approved to extend financial assistance to the extent of ₹175 crore to one of the subsidiaries. The company will seek shareholders approval for the proposals by way of postal ballot. The stock of Sical Logistics slumped 6.34 per cent at ₹122.60 on the BSE.

Published on January 18, 2016
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