Wednesday, August 6, 2008

Kirloskar Brothers acquires The Kolhapur Steel Ltd

Kirloskar Brothers Ltd has now announced with reference to the earlier announcement dated on September 19, 2007, regarding taking over the management of The Kolhapur Steel Ltd (TKSL), that in accordance with the orders passed by the Honourable Board for Industrial and Financial Teconstruction (BIFR) on May 14, 2008.

The unsecured loan of the existing promoters was converted by allotment of equity shares of TKSL.

Further, funds infused by Kirloskar Brothers Ltd for revival of TKSL, have been appropriated by allotment of equity shares of TKSL to Kirloskar Brothers Ltd (KBL) - the new promoter.

KBL has acquired all the Equity shares of Rs 10/- each of The Kolhapur Steel Ltd from the existing promoters by executing a Share Purchase agreement on August 02, 2008 and as per the said orders passed by BIFR.

The share capital of TKSL has been reduced by reducing the nominal value of equity shares from Rs 10/- to Re 1/- each.

As a result, KBL holds 95.95% equity shares of paid up capital of The Kolhapur Steel Ltd and TKSL has become a subsidiary Company of KBL with effect from August 02, 2008.