Business
Proposed merger of Indian subsidiaries
Proposed merger of Indian subsidiaries.
About this update from Rhi Magnesita Nv
[{"type":"text","content":"\n \nRNS Number : 3848W RHI Magnesita N.V. 01 August 2018 \n\n \nRHI Magnesita: proposed merger of Indian subsidiaries\n \nRHI India and RHI Clasil to merge with Indian listed Orient Refractories\n \n\n\n\n· \n\n\nSimplification of corporate structure and consolidation of RHI Magnesita's operating entities to better capture growth potential in the Indian market and enhance shareholder value\n\n\n\n\n· \n\n\nOn completion of the merger, RHI Magnesita will own approximately [70%] in Orient Refractories which will be renamed RHI Magnesita India\n\n\n\n\n· \n\n\nCombined company in India will have pro-forma operating revenues of approximately\n€154 million, two production facilities and more than 700 employees\n\n\n\nVienna, August 01, 2018 - RHI Magnesita, the leading global supplier of high-grade refractory products, systems and services, has today announced the proposed merger of its three Indian subsidiaries. The merger is designed to optimally position RHI Magnesita's operations in the strategically important Indian market to capture growth opportunities more effectively and efficiently. \nThe Boards of Directors of Orient Refractories Limited (\"Orient Refractories\"), RHI India Private Limited (\"RHI India\") and RHI Clasil Private Limited (\"RHI Clasil\"), at their respective meetings held this Tuesday, approved the proposal to merge RHI India and RHI Clasil with Orient Refractories, pursuant to a composite scheme of amalgamation (the \"Scheme\"). Orient Refractories is listed on the Mumbai stock exchange. On completion, RHI Magnesita will own approximately [70%] in Orient Refractories which will be renamed RHI Magnesita India. The transaction is expected to be completed in the next 9-12 months.\nRHI Magnesita's three Indian operating entities to be merged\nOrient Refractories is currently 70% owned [by RHI Magnesita] and a leading manufacturer and supplier of special refractory products, systems and services for the steel industry. RHI India, a wholly-owned RHI Magnesita subsidiary, is the Indian sales company of RHI Magnesita group offering a full range of refractories and related services sourced from various RHI Magnesita group entities to Indian customers. RHI Clasil, is 53.7% owned [by RHI Magnesita], is a man...