Bajaj Auto Ltd (BAL) has announced that the Board of Directors of the Company at its meeting held on May 17, 2007, has approved the Scheme for Demerger (Scheme) of the businesses of the Company.
The demerger of
(1) the two and three wheeler manufacturing undertaking (Manufacturing Undertaking) and
(2) its Strategic Businesses comprising the generation of wind-energy using wind-farms,
the insurance business conducted through its joint ventures Bajaj Allianz Life Insurance Company Ltd and
Bajaj Allianz General Insurance Company Ltd, financial products distribution business conducted through Bajaj Allianz Financial Distributors Ltd
and interests in retail / consumer finance business conducted by Bajaj Auto Finance Ltd. (collectively, the Strategic Business Undertaking)
to two newly incorporated subsidiaries,
Bajaj Holdings and Investment Ltd (BHIL)
Bajaj Finserv Ltd (BFL).
Motorcycle maker Bajaj Auto fell as much as 10.5 percent in
the last part of the session, after it said its insurance joint
venture partner -- Germany's Allianz -- had the option to raise
its stake to 50 percent from the current 26 percent, if the
government raises its current investment ceiling.
It closed 6.7 percent lower at 2,500.30 rupees
* Bajaj Auto Finance Ltd. (BJFN.BO: Quote) fell 7.65 percent to
433.05 rupees, after its parent Bajaj Auto Ltd. (BJAT.BO: Quote) said
its insurance joint venture partner Germany's Allianz had an
option to raise its stake in the business.
The demerger of
(1) the two and three wheeler manufacturing undertaking (Manufacturing Undertaking) and
(2) its Strategic Businesses comprising the generation of wind-energy using wind-farms,
the insurance business conducted through its joint ventures Bajaj Allianz Life Insurance Company Ltd and
Bajaj Allianz General Insurance Company Ltd, financial products distribution business conducted through Bajaj Allianz Financial Distributors Ltd
and interests in retail / consumer finance business conducted by Bajaj Auto Finance Ltd. (collectively, the Strategic Business Undertaking)
to two newly incorporated subsidiaries,
Bajaj Holdings and Investment Ltd (BHIL)
Bajaj Finserv Ltd (BFL).
Motorcycle maker Bajaj Auto fell as much as 10.5 percent in
the last part of the session, after it said its insurance joint
venture partner -- Germany's Allianz -- had the option to raise
its stake to 50 percent from the current 26 percent, if the
government raises its current investment ceiling.
It closed 6.7 percent lower at 2,500.30 rupees
* Bajaj Auto Finance Ltd. (BJFN.BO: Quote) fell 7.65 percent to
433.05 rupees, after its parent Bajaj Auto Ltd. (BJAT.BO: Quote) said
its insurance joint venture partner Germany's Allianz had an
option to raise its stake in the business.
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