JK Tyre and Industry Ltd board on Monday approved the merger plan of Cavendish Industries Ltd, said the company in a press release.
The company said the amalgamation would result in all the businesses being housed in one listed company. It said that the benefits include economies of scale, operational synergies & efficiencies at multiple levels of business operations. It further mentioned that the move would optimise administrative, managerial and other overheads.
Other benefits include reducing interest cost, pooling of resources for faster growth, ease of doing business, comprehensive products offering, availability of combined sales and distribution network, improved customer satisfaction, significant reduction in multiplicity of legal and regulatory compliances, and improved investor perception and enhanced shareholders’ value.
JK Tyres said that it would issue and allot issue and allot shares on a proportionate basis to each shareholder of the Cavendish Industries.
