Precision Camshafts: Memco Engg becomes 100 per cent subsidiary
The Board of Directors of Precision Camshafts Limited (PCL) have approved the acquisition of the remaining 5 per cent equity stake in Memco Engineering Private Limited. The paid-up capital of the target entity is Rs. 7.2 crore.
Memco Engineering has been Precision Camshafts’ subsidiary and PCL is acquiring the balance stake from the target entity’s minority shareholders. Memco Engineering deals in all types of engineering goods and components.
PCL had acquired 95 per cent equity shares of Memco with the objectives of expanding its business operations in 2017. Upon acquisition of 5 per cent equity shares from the existing shareholders, Memco will become a wholly-owned subsidiary of PCL.
Procedural acquisition formalities will be completed immediately from the date of execution of necessary agreements. The acquisition is set to take place for a cash consideration as per the share purchase agreement executed between both the parties.
Memco Engineering is engaged in manufacturing, fabricating, buying, selling, importing, exporting, or otherwise dealing in all types of engineering goods, engineering components including medical equipment such as dental and orthopaedic implants and auto equipment including repair of fuel injunction equipment including parts, components, spare parts and accessories. It was incorporated on June 15, 2006.
On Monday, the stock of Precision Camshafts opened high by 3.1 per cent at Rs. 61.55 per share from the previous close of Rs. 59.75.