The boards of the engineering companies of the Williamson Magor Group have decided on the share-exchange ratios for the proposed merger of the concerned companies, at their meetings held on March 31, 2016.
As per the proposed scheme, the transferor companies are EMC, Mcnally Bharat and its subsidiary Mcnally Sayaji , and the transferee company is Kilburn Engineering Ltd. KEL will issue and allot 235 shares to EMC, 293 shares to Mcnally Sayaji, 120 to Mcnally Bharat for every 100 held and one fully paid up non-convertible redeemable preference share of Kilburn for every paid up NCD to each preference shareholder of Mcnally Bharat.
Aditya Khaitan, vice chairman WM Group said in a statement that this will lead to improved resource-utilisation and cost-savings.
Manoj Toshniwal, managing director of EMC, which had become an equity shareholder of MBEL in 2015, said that KEL will become the complete engineering solution provider.
Until recently MBE was the focus company of the group’s engineering business.
However, tardy economic growth and delayed payments affected its results triggering this consolidation. The combined entity has an annual turnover of over Rs 7,000 crore and a combined order book basket of around Rs 10,000 crore.
Currently EMC and Kilburn hold 28.24 per cent and 1.69 per cent of the paid up share capital of MBEL. MBEL holds 74.9 per cent of Mcnally Sayaji.
As per the amalgamation scheme, Kilburn’s name would be changed to Mcnally Bharat Engineering Ltd .
Kilburn, is engaged in manufacturing of dryers and designing and manufacturing of customised system for critical application in several industrial sectors.
EMC is involved in tower manufacture, EPC projects and power transmission projects.
Mcnally Bharat is into providing turnkey solutions in power, steel, aluminium and material handling.