Larsen and Toubro said a formal scheme for demerging its cement business would come into effect from Friday 14th May 2004. Under the proposal, L&T would separate its 16.5Mt cement division into a different entity UltraTech Cemco, where it would divest 8.5 per cent stake to A V Birla group company Grasim Industries.
Grasim Industries, which holds minority stake in the demerged company, would then make a public offer for additional 30 per cent stake in CemCo. The scheme of arrangement for demerger of cement business sanctioned by Mumbai High Court would become effective from Friday, May 14, 2004, the company said in a notice.
The cement business comprising all the estate, assets, rights, claims, title, interest and authorities including accretions and appurtenances stand transferred to in Cemco from the appointed day, i.e. April 1, 2003, in terms of the Scheme of Arrangement, the notice said.
According to the approved plan, the issue of shares and commencement of open offer by Grasim would take place within 45 days from the public announcement. As per the scheme, L&T equity holders on the record date will be issued one equity share of the face value of Rs 2 each for every two equity shares held, and two equity shares of the face value of Rs 10 each in CemCo for every five equity shares of the face value of Rs 10 held. The record date has been fixed as May 27. (Times of India Report)