The Rs 11,500 crore RPG Group on Monday said two group companies, RPG Transmissions (RPGT) and National Information Technologies (NITEL), would merge with another group firm KEC International.
While both KEC International and RPGT are engaged into setting up of power transmission and railway electrification businesses, NITEL is in the business of building and operating of telecom infrastructure.
The move was to make KEC International the largest telecom and transmission tower manufacturing company in the world and to achieve different operational synergies between them.
The investment division of KEC, comprising investments in the shares of RPGT, will also be demerged into a separate company. Elaborating the swap ratio, he said, RPGT shareholders will get four equity shares of KEC International for every nine shares they hold in RPGT.
On the other hand, for every 15 shares, NITEL shareholders will get two equity shares in KEC. Post-demerger of the investment division in KEC, for two shares in KEC, shareholders will get equal number of shares in the proposed new company.
Read more in The Economictimes article.
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