Manufacturers of alloy and stainless steel long products, Mukand, has inked a master agreement with Sumitomo Corporation for formation of joint venture (JV) to carry on the business of CFB&W, sold / transferred on September 30, 2012 to TMPL for a consideration of Rs 252.50 crore, subject to any adjustments as provided in the terms of sale /transfer and approval of secured lenders, in pursuance of the aforesaid resolution.
In view of the above, the business of CFB&W comprising of its rights, title and interest in the movable and intangible assets, but excluding its interest in land, property lease , employees and liabilities have been transferred to TMPL and will be carried on by the company in joint venture with Sumitomo as per the terms of the master agreement.
Earlier in August this year the Board of Directors of the company had approved the sale of its Cold Finished Bars & Wires (CFB&W) business to a subsidiary of the company viz. Technosys Metal Processing (TMPL) and to convert the said subsidiary into a joint venture company (JV Co.) with Sumitomo Corporation, Japan (Sumitomo).
Besides, the shareholders of the company had by postal ballot approved the aforesaid sale with requisite majority (i.e. about 99.98% of votes polled in favour of the resolution) on September 26, 2012.
Mukand, earlier known as Mukand Iron & Steel Works, is engaged in manufacturing of alloy and stainless steel long products. The company operates in four segments namely steel, industrial machinery, road construction and other products.
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