Pricol Ltd has said that it has said that the company has decided to merge its wholly owned subsidiary Pricol Pune Ltd, an autocomponent company into itself. The company also said that it has sold its wholly owned subsidiary Coimbatore Metal Works Ltd for a consideration of Rs 13 crore.
The Pune subusidiary was earlier a joint venture firm under a 50:50 partnership between Johnson Controls and Pricol, formed in 2012. Jonshon Controls, a global leadeer in automotive seating, overhead systems, door and instrument panels and interior electronics during the time, entered into the joint venture. However, with the partner losing interest in the sector later, in May, 2015, Pricol completed acquisition of Johnson control's 50 per cent stake in the company, making it as Pricol Pune Ltd, a fully owned subsidiary of the company.
Shareholders of Pricol shall be issued one equity share of the face value of Re 1 each of Pricol Pune, for every one equity share of the face value of Re 1 each held in Pricol, said the company in an announcement with the regulator. The transaction is subject to necessary regulatory approvals.
Following the amalgamation, the shareholding of Pricol Pune shall be the mirror image of Pricol's shareholding patterna dn the equity shares of Pricol Pune held by Pricol shall be cancelled.
Coimbatore Metal Works Ltd, which has been into casting of metals, has been making loss over years. The gross turnover of the company for the fiscal year ending March 31, 2015 was Rs 26 crore, which constituted 2.19 per cent of the consolidated turnover of the company. The networth of the subsidiary for the fiscal year was Rs 4 crore, which constituted 1.46 per cent of the consolidated networth of the company.
The company has entered into share purchase agreement for sale of shares to eight individuals, on January 21, 2016, said the company.