RPG Cables to merge with KEC Intl

Written by fe Bureaus | Mumbai | Updated: Nov 1 2009, 04:52am hrs
As part of a new corporate restructuring strategy, the boards of directors of KEC International Ltd and RPG Cables Ltd (RPGCL) have approved the latters merger with KEC. Under the terms of the proposed merger, the exchange ratio recommended by both the boards is that RPGCL shareholders will receive one share of KEC for every 20 RPGCL shares held by them.

Addressing a press conference here, Ramesh Chandok, managing director and chief executive officer, KEC International, said: The appointed date of merger of RPGCL with KEC is March 1, 2010. Based on the recommended merger ratio, KEC will issue 20.74 lakh new equity shares to the existing shareholders of RPGCL. This will result in a 4.2% increase in equity base, from Rs 49.34 crore to Rs 51.42 crore. Consequently, the promoter holding in KEC will reduce from 41.94% to 41.59%.

Shares of KEC International dipped 2.55% on Friday to close at Rs 550.65, while those of RPG Cables rose by 4.98% to close at Rs 25.30 on the BSE.