Press release from Business Wire India
Source: Jubilant Industries Ltd.
Wednesday, May 11, 2011 05:45 PM IST (12:15 PM GMT)
Editors: General: Consumer interest; Business: Banking & financial services, Business services, Financial Analyst, Media & entertainment, Retailers
--------------------------------------------------
Jubilant Industries Board approves Scheme of Arrangement to Restructure its Business and enable Foray into Mall cum Hypermarket format
Noida, Uttar Pradesh, India, Wednesday, May 11, 2011 -- (Business Wire India) -- Jubilant Industries Ltd, (JIL) a leading Agri & Performance Polymers company, headquartered in Noida, India, announced today that its board has approved the scheme of arrangement to restructure its businesses by vesting its Agri and Consumer Products business (ACP) with its wholly owned subsidiary Jubilant Agri and Consumer Products Ltd (JACPL).
JACPL, intends to acquire the division comprising sales of consumer products, whole sale trade & leasing of mall space of Enpro Oil Pvt Ltd (EOPL) to foray into the high growth potential Hypermarket business. JACPL is also engaged in agri and consumer products. JIL will issue its equity shares to the shareholders of EOPL, a Jubilant Bhartia Group Company, at a valuation determined by Price Waterhouse & Co (PwC) and a fairness opinion given by Kotak Mahindra Capital Company Ltd.
This scheme of arrangement among JIL, JACPL and EOPL is subject to court approval and has an appointed date of 1st April, 2011..
Commenting on this development, Hari S Bhartia, Chairman of Jubilant Industries Ltd said:
"Jubilant Industries' foray into Mall cum Hypermarket format is a strategic initiative that will enable the Company to grow faster and deliver better value to all its stakeholders. It will also facilitate better utilization of the resources to be deployed in the high growth Mall cum Hypermarket business which has huge untapped potential. Jubilant Bhartia Group has nurtured this business over a decade and this move will enable both the businesses to grow to the next level and create a better value proposition"
About EOPL
The division comprising sales of consumer products, whole sale trade & leasing of mall space business of EOPL under the brand name Total is an established chain in Bengaluru. It currently operates 4 stores in hypermarket and mall format, located in densely populated affluent areas serving over 8 lac customers every month. As per plans, another 2 stores would be operational in the next 3 months taking the total area under operation to over 9.4 lakh sq ft area housing popular brands. This business established since 2000, has been nurtured by the promoters of Jubilant Bhartia Group, and has recorded revenue of Rs. 315 Crores for FY 2010-11, making store level operating profits. The business is led by experienced management team and aims to expand the business with profitable growth, going forward.
Rationale & Benefits of the Scheme
JIL & JACPL
The rationale for vesting agri and consumer products business into a wholly owned subsidiary JACPL and acquiring this business, by this entity is:
-- To foray into Mall cum Hypermarket format - an upcoming sector with immense untapped potential
-- To enable effective utilisation of the surplus cash generated by the ACP business of JIL for growing this business
-- To enable the company to attract a different set of investors, strategic partners who can bring relevant experience for the growth of this business
-- To provide growth prospects to shareholders and enable value creation
This Scheme has been drafted by Amarchand Mangaldas and on successful implementation of the scheme it is envisaged that the promoter holding in JIL will be at 65.5% from the current level of 47.5%, on account of fresh issuance of shares by JIL, on account of this transaction.
This business restructuring between JIL, JACPL and EOPL will enable focused growth and value realization across operating entities and is in the best interest of the shareholders, creditors and employees and would result in enhancement of shareholder value for all entities.
About Jubilant Industries Ltd (JIL)
Jubilant Industries Ltd. headquartered in Noida, (UP) India is a Jubilant Bhartia group company. The Company's diversified portfolio includes a wide range of Crop Nutrition, Crop Growth and Crop protection Agri products and Performance Polymer products comprising Consumer Products like adhesives, wood finishes, emulsions, Food Polymers and Latex such as vinyl pyridine, SBR and NBR latex. www.jubilantindustries.com
Jubilant Industries Disclaimer: Statements in this document relating to future status, events, or circumstances, including but not limited to statements about plans and objectives, the progress and results of research and development, potential product characteristics and uses, product sales potential and target dates for product launch are forward-looking statements based on estimates and the anticipated effects of future events on current and developing circumstances. Such statements are subject to numerous risks and uncertainties and are not necessarily predictive of future results. Actual results may differ materially from those anticipated in the forward-looking statements. The Company may, from time to time, make additional written and oral forward looking statements, including statements contained in the company's filings with the regulatory bodies and our reports to shareholders. The company assumes no obligation to update forward-looking statements to reflect actual results, changed assumptions or other factors.
CONTACT DETAILS
Seema Ahuja, Jubilant Industries Ltd., +91 (120) 4361062, seema_ahuja@jubl.com
Nidhi Aggarwal, Jubilant Industries Ltd., +91 (120) 4361002, nidhi_aggarwal@jubl.com
KEYWORDS
CONSUMER, BANKING, BUSINESS SERVICES, Financial Analyst, MEDIA, RETAIL
If you wish to change your Business Wire India selection please click on this link http://www.businesswireindia.com/media/news.asp and use your personal username and password to login.
Submit your press release at http://www.businesswireindia.com
No comments:
Post a Comment