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G. K. Nair

Kochi , June 4

THE board of directors of GTN Textiles Ltd at a meeting here on Saturday, in pursuant to the recommendation of the Special Business Committee appointed by the company for the de-merger of its Aluva unit, has approved the scheme of arrangement.

According to Mr E. K. Balakrishnan, Company Secretary, the salient features of the scheme are that the company would undertake a scheme of arrangement and de-merger.

This will provide for the transfer of business activities of the Aluva unit along with investment of the company in Patspin India Ltd (39.07 per cent of the equity share capital of that company) and the offices as well as its assets situated in Mumbai, Kolkata and Coimbatore to a new company viz., GTN Industries Ltd. The new company is proposed to be listed on the relevant stock exchanges on which the existing shares of the company are listed.

In consideration of the transfer of and vesting of the de-merged business of GTN Textiles Ltd (transferor company), the shareholders would also own shares of GTN Industries Ltd (transferee company) in the ratio of one share for every single share held in the transferor company. This swap ratio is based on the recommendations of independent valuers.

With effect from the date of de-merger, the name of GTN Textiles Ltd will be changed to GTN Industries Ltd and the name of GTN Industries Ltd to GTN Textiles Ltd, he said.

The scheme is subject to the approval of the shareholders and creditors of the company, the High Court of Kerala and other statutory or regulatory authorities, which by law, may be necessary in connection with the scheme, Mr Balakrishnan said.

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