Pune-based Kinetic Motors (KMCL) has received the Bombay High Court’s approval for merger of KMCL with Kinetic Engineering (KEL). The final order will be received within 15 days. The amalgamation intends to consolidate synergies including enhanced financial strength and flexibility leading to strengthening and alignment of various stakeholders’ interest, reduction of cost and value creation for the stake holders.
As a result of the merger, the stake of the promoters in Kinetic Engineering would stand at 53% from a current stake of 57%. The balance of shares will be held by public and financial institutions.