A source in the group said the scheme of amalgamation will sharpen the group’s focus in real estate business following opening of foreign direct investment in the sector. The promoters hold a 51 per cent stake in MRL and nearly 97 per cent stake in PHL.
After the merger, MRL will be christened Peninsula Land Ltd, with effect from April 1, 2005. The shareholders of PHL will get two shares of MRL for every one share held.
The leasing business of Piramyd Retail and Merchandising Private will be demerged from MRL and one thousand 5 per cent preference shares of Rs 10 each would be issued to the non-PHL shareholders of Piramyd.
Currently, PHL provides project management, consultancy and marketing services for all projects of MRL. Some projects completed by PHL in terms of rendering project management services are Crossroads, CR2 (in JV with L&T), Peninsula Corporate Park and Palm Beach. Other projects on hand are Bayside Mall and Peninsula Plaza.
PHL also develops projects on its own and thus, has successfully obtained rights for developing Swan Mills. It is also at an advanced stage of negotiation for developing a property in Lower Parel, besides certain other projects.
According to a media statement, MRL intends to leverage the expertise of PHL to emerge as one of the lading players in real estate in India. “The integration of PHL and MRL will enable MRL to have and end-to-end chain in real estate development. MRL is confident that its integration with PHL will beneficial to the company and all its stakeholders.” the release added.
Recently, the textile operations of the MRL have now been transferred into Morarjee Textiles .
“After such divestment of textile operations, MRL is left only with properties in Mumbai. Once Ashok Towers and the other projects it has on hand are completed and sold, the company would have to source additional projects to further its business. Hence from the point of view of MRL shareholders it becomes a priority to harness the specialised skills of PHL in project development and construction for flourishing in the new business,” the release said.
Piramal to merge PHL with Morarjee Realties
Our Corporate Bureau / Mumbai Mar 05, 2005, 21:50 IST
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