Financial Daily from THE HINDU group of publications
Saturday, May 22, 2004
Financial Daily from THE HINDU group of publications Saturday, May 22, 2004 |
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Corporate
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Announcements Voltas to exit venture with France's Sermo Montaigu Our Bureau
New Delhi , May 21 VOLTAS Ltd proposes to exit from its joint venture with the French company Sermo Montaigu. The company has decided to sell its equity stake in Sermo PM India Ltd (SPMIL), formerly known as Prefect Moulds Ltd (PML), to the French joint venture partner for a consideration of Rs 5.21 crore. Voltas said that after re-aligning its business activities and due to commercial and other diverse reasons, it proposes to transfer its entire shareholding of 6.5 lakh (65,00,000) equity shares for the said consideration to Sermo. The paid up capital of SPMIL of Rs 13 crore is currently held in equal proportion. Voltas has also informed the BSE about its decision. According to the company, Sermo has expressed interest in expanding its equity base in SPMIL and has proposed to purchase the balance 50 per cent shareholding of the company in SPMIL. The aforesaid transfer of shares and consequential increase in shareholding of Sermo from 50 per cent to 100 per cent in SPMIL is subject to requisite approvals including those from the Central Government and Reserve Bank of India. Upon transfer of shares as stated SPMIL would cease to be a joint venture company of Voltas and become a wholly-owned subsidiary of Sermo Montaigu, France. It may be recalled that Voltas had entered into the joint venture with Sermo Montaigu in March 2002, for its wholly owned subsidiary company PML. Located at Pune, PML is engaged in the design and manufacture of precision plastic injection and compression moulds. In fact, PML has been exporting moulds to Sermo and following the formation of the joint venture, benefited further from better manufacturing and process controls, appropriate technology and skills related to manufacture of large-size moulds, higher capacity utilisation and foreign exchange earnings through exports.
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