Mercator Announces De-merger Of The Dredging Business
Mercator Limited announced that its Board of Directors has approved the de-merger of Dredging Business into a separate entity. Mercator Dredging Private Limited will be listed as a separate entity as part of the de-merger process. The board had earlier initiated a study to evaluate the potential of a de-merger and had appointed a consultant to evaluate the possibility of a business restructuring.
Rationale for De-merger
1. Streamline management focus and create superior shareholder returns by unlocking value.
2. De-merger creates a focused pure-play entity with better access to capital
The appointed date for the proposed scheme is October 1, 2018, and the scheme is subject to shareholders’ and various other regulatory approvals. PricewaterhouseCoopers Private Limited is the professional consultants appointed by the company for assisting the Demerger activity.
Mr Shalabh Mittal; CEO; Mercator Limited said: “In the view of government’s thrust on inland waterways, river linking and Sagar Mala projects, we believe that there is a substantial growth opportunity in the dredging business and we want to be prepared to capitalise on the same. The de-merger will create a focussed pure play entity with the potential to create superior long-term shareholder value.