JK Tyre approves merger of Cavendish Industries into the company

Both the companies are engaged in a similar line of business, and the amalgamation will result in all the related businesses being housed under one listed company.

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The board of JK Tyre has approved the merger of Cavendish Industries into the company for operational efficiencies, and the amalgamation will result in a share transfer, the company said on September 16.

Shareholders will get 92 shares of JK Tyre for every 100 shares of Cavendish held, the said the company. JK Tyre said the amalgamation will result in operational synergies, reduce cost, consolidate sales and distribution network, and enhance shareholder value.

Both the companies are engaged in a similar line of business, JK Tyre said, and the amalgamation will result in all the related businesses being housed under one listed company. After the scheme, there is a slight change in the shareholding pattern, with promoter stake slightly falling to 49.31%.

JK Tyre & Industries had acquired Cavendish Industries, a Kesoram Industries unit, for Rs 2,195 crore, to enhance its position in the truck and bus radial segment.