MUMBAI, July 3: The board of directors of DCW Ltd has decided to restructure its operations by hiving off two divisions into separate companies.The company will demerge its property undertaking (comprising business centres) of book-value approximately Rs 45 crore and its investment undertaking (comprising its holdings in DCW Home Proudcts Ltd) of book value approximately Rs 31 crore from its core business activities, namely, manufacture and sale of Heavy Chemicals and petrochemicals.

The above two undertakings will be transferred to two new companies. In consideration of the transfer, each new company will issue its fully paid-up equity shares free of cost to the shareholders of DCW Ltd in the ratio of one equity share of Rs 10 each for every four equity shares of Rs 10 each held in DCW Ltd.

The scheme of arrangement is subject to the approval of the shareholers of the company and of the Gujarat High Court under Sections 391 and 394 of the Companies Act, 1956 and such other approvals as many be necessary. The company will be submitting an application to the Gujarat HC, on this matter.

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