JK Tyre has today, 16 September, 2024, approved the merger of Cavendish Industries into the company.
As part of the merger, shareholders of Cavendish Industries will receive 92 fully paid-up equity shares of JK Tyre (Rs 2 each) for every 100 equity shares of Cavendish Industries (Rs 10 each). This share exchange ratio was determined by PwC Business Consulting Services LLP, with ICICI Securities providing a fairness opinion.
The consideration for the amalgamation will be discharged on an "arm's length" basis. The Scheme is subject to approval from the stock exchanges, the National Company Law Tribunal, shareholders and Creditors of the companies involved in the Scheme.
Pursuant to the scheme, promoters will hold 49.31% of the shares, with the public holding 50.69% of the shares.