Shares of Motherson Sumi were trading near 52-week high at ?245 per share on the BSE in Wednesday’s early deals after the company on Tuesday received CCI’s approval for intra-group reorganisation of Motherson Group.
The Competition Commission of India (CCI) on Tuesday gave approval to a proposal pertaining to intra-group reorganisation of the Motherson Group under the green channel route.
Green channel is an automatic approval system, whereby a combination is deemed to have been approved by the CCI upon receiving the filing of the notice for the combination by the parties concerned.
Under its proposed group restructuring, the company will demerge its domestic wiring harness (DWH) business into a new company that will eventually be listed. After the demerger, Samvardhana Motherson International Ltd (SAMIL) will be amalgamated by absorption into Motherson Sumi Systems Ltd’s (MSSL), being the resultant company.
On proposed amalgamation, MSSL will be renamed as Samvardhana Motherson International Ltd (new SAMIL).
News Source:- Livemint