Coimbatore :

Coimbatore-based auto component manufacturer Pricol Ltd has said that its board of directors and the board of directors of Xenos Automotive Ltd (Xenos) today approved the merger of Xenos with Pricol through a scheme of amalgamation to be sanctioned through a court approval process.

The scheme envisages amalgamation of Xenos with Pricol, followed by the dissolution without winding up of Xenos.

Shareholders of Xenos would be issued Pricol shares in the ratio of 1:122 (one equity share of Re 1 each of Pricol for every 122 equity shares of Rs10 each of Xenos).

Approval of the stock exchanges – BSE and NSE – where Pricol shares are listed would be sought and the scheme would be filed with the Madras High Court for its approval.

Besides, the sanctioning of the scheme was subject to the approval of shareholders and secured creditors, the company said in its filings with the stock exchanges.

While Pricol is an auto component manufacturer, Xenos is into the production of a range of automotive accessories like vehicle security systems, entertainment products like head units, amplifiers, sub woofers, convenience products such as car mobile and laptop chargers and car care products.

source: http://www.thehindubusinessline.com / Business Line / Home> Companies / by R. Yegya Narayanan / Coimbatore – January 24th, 2014