Kinetic Engineering Ltd (KEL) has announced the completion of its restructuring, thus bringing synergies across its various businesses.
“We are pleased to announce the culmination of the initiatives undertaken that aims at streamlining our business and aids in executing our strategic plan that will focus upon the enormous opportunities prevailing in Indian and global market place. Innovation, leveraging synergies; acceleration of profitable growth and increasing shareholder value has been the company’s primary objective,” said Sulajja Firodia Motwani, Vice-Chairperson, KEL.
As per the recast, Kinetic Engineering and Kinetic Motor Company have been merged with effect from February 13, 2013. The Bombay High Court has approved the merger.
As a result, the stake of the promoters in Kinetic Engineering would be 53 per cent, against the present 57 per cent. The balance shareholding will be with public and financial institutions.
Following the merger, the investment of 6,12,000,00 shares of Rs.10 each in Mahindra Two Wheelers Ltd. (which had acquired the two wheeler business of Kinetic Motors) will be directly held by KEL, at a face value of around Rs.61 crore.
“The merger culminates the restructuring activity undertaken by the Kinetic group to streamline its manufacturing and engineering entities towards a focussed player in the automotive systems and components business with powertrain systems as its focal point,” the company said.
KEL has also extended the conversion of $18 million Foreign Currency Convertible Bonds till February 2014.
The company had approached its bondholders, who also consented to the restructuring, the company said. The company has also appointed Harjit Bhatia as additional director replacing Santosh Senapati.
Keywords: Kinetic Engineering Ltd