The Hindu : Gujarat Glass shares for Nicholas Piramal shareholders

Online edition of India's National Newspaper
Saturday, Jun 14, 2003

Business

Business

Gujarat Glass shares for Nicholas Piramal shareholders

By Our Special Correspondent

MUMBAI JUNE 13. In a move designed to enhance value for Nicholas Piramal India (NPIL) and its subsidiary, Gujarat Glass Pvt. Ltd. (GGPL), the board of directors of NPIL has taken today an in-principle decision to transfer GGPL shares constituting 53.8 per cent holding held by NPIL to NPIL's shareholders through a new holding company (NHC). The move is expected to optimise gains for shareholders of both NPIL and GGPL. This will be done under a scheme of arrangement under Sec. 391/394 of the Companies Act, 1956. The above decision is subject to all applicable approvals.

Explaining the rationale for the move, the NPIL's Chairman, Ajay Piramal, said, "NPIL will now focus on pharma, with improved consolidated financials, and conserving its capital outlay for its intellectual-asset intensive business. This move will enable NPIL to vigorously pursue its growth strategy in its core pharmaceutical business. Gujarat Glass will be independent to pursue its future plans in flaconnage sector.''

The shares of NHC would be offered free of cost to the shareholders of NPIL in proportion to their shareholding in NPIL and would be listed on the stock exchanges on which the NPIL shares are listed. As a result of the arrangement, NPIL's consolidated financials will improve with an enhanced investment capability to capitalise on opportunities in its core pharma business.

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