At meeting held on 30 November 2015
Shiva Texyarn announced that the Board of Directors of the Company at its meeting held on 30 November 2015, have approved the proposal for demerging the Spinning Unit located at Dindigul, Tamilnadu with a capacity of 39072 Spindles and 22 numbers of windmills relating to the Unit with a capacity of 10.65 MW through a Scheme of Arrangement to be sanctioned through a Court approval process. The appointed date of the Scheme is 01 April 2015.The valuation Report issued by Chartered Accountants - V K S Aiyer & Co, Coimbatore and Fairness Opinion issued by Dalmia Securities were placed before the Audit Committee of Shiva Texyarn Limited. Based on the aforesaid Valuation Report and Fairness Opinion the Audit Committee of Shiva Texyarn Limited recommended the Scheme, under Section 391-394 of the Companies Act, 1956.
The Scheme will be filed with the Stock Exchanges - National Stock Exchange of India and BSE where the shares of Shiva Texyarn Limited are , as per SEBI Circular, for their approval to the Scheme. The Scheme shall be filed with the Hon'ble High Court of Judicature of Madras for its approval. Sanctioning the Scheme will also be subject to the approval of shareholders and secured creditors.
Shareholders of Shiva Texyarn shall be issued shares in STYL Textile Ventures in the ratio of 2 (Two) equity shares of Rs.10/- each of STYL Textile Ventures for every 5 (Five) equity shares of Rs.10/- each held in Shiva Texyarn in terms of the Scheme.
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