JK Tyre okays merger with arm Cavendish Industries

17 Sep 2024 , 02:38 PM

On Monday (September 16), tyre producer JK Tyre & Industries Ltd announced that its board of directors has authorised a merger plan with its subsidiary Cavendish Industries Ltd.

As part of the transaction, owners of Cavendish Industries will get 92 fully paid-up equity shares of JK Tyre (₹2) for every 100 equity shares of Cavendish Industries (₹10). PwC Business Consulting Services LLP determined the share exchange ratio, while ICICI Securities provided a fairness assessment.

The proposed merger of Cavendish Industries and JK Tyre is subject to approval from regulatory bodies, stock exchanges, the National Company Law Tribunal (NCLT), and shareholders.

In the June quarter, JK Tyre’s profits before interest, taxes, depreciation, and amortisation (EBITDA) increased by 9.3% to ₹500 Crore from ₹457.3 Crore in the first quarter of FY24. Its margin increased to 13.7% from 12.3% in the previous fiscal year.

We wish to inform you that the Company’s Board of Directors (the Board) met today, September 16, 2024, and considered and approved the draft Scheme of Amalgamation of Cavendish Industries Limited (Transferor Company) with the Company and their respective shareholders,” the company stated in a stock exchange filing.

At around 1.14 PM, JK Tyre was trading 0.96% lower at ₹438.10, against the previous close of ₹442.35 on NSE. The counter touched an intraday high and low of ₹452.75, and ₹434.25, respectively.

For feedback and suggestions, write to us at [e-mail]