PC Jeweller’s board approves export division demerger
today May 13, 2019
The PC Jeweller’s board of directors has approved the proposed demerger of its export division which will be amalgamated into its wholly-owned subsidiary PCJ Gems & Jewellery Ltd.
The jewellery business announced the approved demerger of its export division on May 12, the Press Trust of India reported.
"The board of directors of the company in its meeting held yesterday i.e. May 11, 2019, has considered and approved the scheme of arrangement for demerger of 'export division' (demerged undertaking) of PC Jeweller Ltd (demerged company) and subsequent amalgamation of the same with its wholly owned subsidiary company i.e. PCJ Gems & Jewellery Ltd," read the business’ regulatory filing on May 12.
The business also reported that the demerger will take place after regulatory and other necessary approvals are secured. The National Company Law Tribunal, Sebi, stock exchanges, and shareholders need to approve the demerger before it can take place.
The business cited achieving the best possible future growth as the reason for the demerger. "In order to ensure sustainable long-term growth, profitability, market share and continuous customer service, both require focused management attention, different sets of skills and resources to meet competitive, regulatory environment and to mitigate risks," read the filing.
Once the businesses are demerged, they can form business plans that suit their market and situation.
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