TCI Announces Demerger of its Express Distribution Business (TCI XPS)
Author(s): City Air NewsChandigarh, October 9, 2015: The Board of Directors of Transport Corporation of India Limited (TCI), approved a scheme of arrangement envisaging the demerger of its Express Distribution division (XPS) undertaking...
cityairnews
Oct 9, 2015 12:30
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Chandigarh, October 9, 2015: The Board of Directors of Transport Corporation of India Limited (TCI), approved a scheme of arrangement envisaging the demerger of its Express Distribution division (XPS) undertaking into wholly owned subsidiary TCI Express Ltd (Formerly known as TCI Properties (Pune) Ltd.). This is subject to the requisite approvals of the Shareholders and Creditors of the respective companies, sanction of the Hon’ble High Court of Hyderabad for the State of Telangana and Andhra Pradesh, Stock Exchanges, SEBI or such competent authority and other necessary statutory approvals. The Board also announced delayering of its global holding structure by liquidation of its wholly owned subsidiary TCI Global Holding (Mauritius) Ltd. and consequent capital reduction under the said scheme.
With a clear objective to capitalize on the fast growing e-commerce and high value express business, we believe that the restructuring will create a focused entity with the right operational flexibility to create prospective for hyper growth. The demerged entity will provide shareholders a unique opportunity to participate in the growth of a well established express company; with a strong customer base, trained professional employees and a modern national infrastructure of hubs, trucks and delivery vans; to enhance value for our shareholders and provide momentum for enhanced growth for the Group.
TCI XPS currently contributes 30% of revenues and 37% of standalone net profits of TCI. According to the proposed scheme, TCI Express Ltd. will issue and allot one (1) equity share of Rs 2/- each fully paid up for every two (2) equity share of Rs 2/- each fully paid up held in TCI on record date to all shareholders of TCI so as to create a mirror image of shareholding pattern in TCI Express Ltd. As part of the scheme,
TCI Express Ltd. shall also seek listing on Stock Exchange(s) post High Court approval.
Date:
Friday, October 9, 2015
