CES Limited is an Information Technology (IT) and Information Technology Enabled Services (ITES) provider, dedicated to serving the midsize market of global enterprises. It has mainly two divisions i.e., IT Division and ITES Division. The Company is listed on BSE Limited and has only 26 shareholders.
The Transaction:
Management of CES Limited (Demerged Company) proposed the demerger of the "ITES Business" into its presently "wholly owned subsidiary" i.e., CES Technology Private Limited (Resulting Company) on going concern basis through scheme of arrangement.
Appointed Date fixed for this transaction is 1st April 2022 and the scheme will become effective from the date of filing certified copy of the scheme with the Registrar of Companies.
Shareholding Pattern of CES Limited:
Shares of CES Limited are not frequently traded. Out of 14 shareholders, few shareholders might not be traceable since they are still holding the shares in physical form.
ITES Division getting demerged has Total Assets of Rs.45.50 Crores consist of majorly Investments in the subsidiary companies in India, USA and Trade Receivables.
Since the investment in the foreign subsidiaries is getting transferred, post scheme of arrangement, Resulting Company will have to comply with the FEMA Compliances w.rt Overseas Direct Investment.
Scheme of Arrangement also providing for the following:
1. Delisting of the Demerged Company from stock exchange.
2. Reorganization of capital of Demerged and Resulting Company
Rationale of the Scheme:
This story is from the September 2022 edition of M & A Critique.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the September 2022 edition of M & A Critique.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
TRIVENI Group consolidates its Sugar Mills & Distillery while demerging its Power Transmission Business
The Board of Directors of Triveni Engineering & Industries Limited announced consolidation of its recently acquired listed company followed by separation of its power transmission business.
SKF India follows Global Initiative to Separate its Automotive & Industrial Business
Following the footprints of the global announcement made by AB SKF, SKF India Limited decided to split its Industrial business from the automotive business.
JK Paper Group wants to consolidate its core businesses
Recently JK Paper Limited announced internal restructuring which will enable the group to consolidate its paper products operations along with reorganisation of reserves.
Themis Group to consolidate its operations
Themis Medicare Limited (\"TML\" or \"Transferee Company\") is engaged in the business of manufacturing of finished formulations and synthetic Active Pharmaceutical Ingredients (\"APIS\"). The equity shares of TML are listed on the Stock Exchanges.
Siyaram Silk Mills "Special Reward" to Shareholders – Shall Issue Preference Shares as Bonus Shares
Recently Siyaram Silk Mills Limited announced issuance of compulsorily redeemable preference shares as a bonus” to all the equity shareholders.
Cello Group's decides to simplify its corporate structure
Cello World Limited (\"CWL\" or \"Transferee Company\") is a company incorporated under the provisions of the Act.
Whether Long Term Capital Loss allowed in case of Share Capital Reduction?
Recently, Hon'ble the Supreme Court reiterated that reduction in share capital is covered under Section 2(47) of the Income Tax Act, 1961 and assessee is eligible to claim losses.
STRATEGIC MERGER SHALL CATAPAULT ASTER DM AS THE 3rd LARGEST HOSPITAL CHAIN IN INDIA
\"The resulting merged listed entity will be called Aster DM Quality Care Limited\"
STAMP DUTY EXEMPTION ON TRANSFER OF SHARES AS PART OF MERGER OF SUBSIDIARIES
A Writ Petition was filed by Ambuja Cements Limited (hereinafter \"the Petitioner\" or \"ACL\"), challenging the imposition of stamp duty on a merger order under Article 23 of Schedule IA of the Indian Stamp Act, 1899 by Collector of Stamps, Delhi (hereinafter \"Respondent\").
Acquisition of Plastic Injected Moulding Business from Sundaram Auto helps Pricol Group to a leadership position in Auto Component Sector
Recently, Sundaram Auto Components Limited, a wholly owned subsidiary of TVS Motor Company Limited approved the sale of its injection moulded plastic component solutions division to Pricol Precision Products Private Limited, a wholly owned subsidiary of Pricol Limited, as a going concern on a slump sale basis.
