Schaeffler India has announced that it has got approval from shareholders and creditors to merge INA India and LuK India to form one ‘One Schaeffler’, that will help it be among the largest automotive and industrial supplier in India.
The company has announced that the requisite majority of the shareholders and creditors of the company have voted in favour of the scheme of amalgamation of the two unlisted entities, INA Bearings India and LuK India with Schaeffler India at their respective meetings held on March 20, 2018, in line with the NCLT (National Company Lab Tribunal), Mumbai order and SEBI requirements. The merger is now pending sanction from the NCLT benches in Chennai and Mumbai. Once the merger is effective, it will streamline Schaeffler India operations under one corporate umbrella.
According to the company after the sanction of NCLT and post completion of other legal formalities, Schaeffler India shall issue 14.64 million new equity shares, in the ratio of 10 equity shares to shareholders of INA India, for every 65 equity shares held and 10 equity shares to shareholders of LuK India, for every 35 equity shares held, thereby increasing its outstanding equity shares to 31.26 million. The shareholding of the promoter group post the merger will be 74.13 percent.
Commenting on the announcement, Dharmesh Arora, managing director, Schaeffler India said, “We are thankful to all our shareholders and creditors who have wholeheartedly supported this scheme to create One Strong Schaeffler entity. The merger is aimed at leveraging the synergies of the three companies and it will allow us to combine our strengths to deliver superior value for shareholders and customers."
"Once the merger is effective, the combined entity will result in creation of a leading Indian automotive and industrial supplier with approximately Rs 4,000 crores of revenues and around 3,000 employees. ‘One Schaeffler’ proposes to realise revenue and cost synergies by bundling product offerings, leveraging distribution networks and reducing overhead costs. Higher growth and margin expansion will also create value for all stakeholders,” concluded Arora.