L&T’s Cement Business Demerger To Be Effective From May 14

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Mumbai, May 12: The Scheme of Arrangement (SoA) for demerger of Larsen & Toubro’s (L&T) cement business sanctioned by the High Court of Bombay has been declared effective from May 14, 2004. This implies that the public announcement by Grasim to acquire another 30 per cent in Cemco will be made on Friday.

As per the SoA, the issue of shares and commencement of open offer will take place within 45 days from the public announcement.

Grasim expects the open offer to be completed by June/July.

L&T has filed certified copies of the orders with the Registrar of Companies, Maharashtra, according to a company notification to the National Stock Exchange(NSE).

In terms of the sanctioned SoA, the equity shareholders of L&T as per the record date will be issued one equity share of the company of the face value of Rs 2 each for every two equity shares held as well as two equity shares of the face value of Rs 10 each in UltraTech CemCo Ltd for every five equity shares of the face value of Rs 10 each held.

L&T has further informed NSE that the record date for reckoning the shareholders entitled to receive the new equity shares of the company in the restructured capital as also the equity shares of UltraTech CemCo Ltd, in terms of the SoA, has been fixed as May 27, 2004.

Grasim has already deposited the entire open offer consideration in an escrow account. The company had deposited Rs 128 crore in December 2003 and Rs 1,151 crore in April 2004.