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Bata India announced Scheme of Amalgamation BPL and CCEL

Bata India announced Scheme of Amalgamation BPL and CCEL
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Bata India

Highlights

Bata India has said that the respective boards of its subsidiaries, namely Bata Properties Limited (BPL) and Coastal Commercial & Exim Limited (CCEL) have approved the proposed scheme of amalgamation between CCEL and BPL.

Bata India has said that the respective boards of its subsidiaries, namely Bata Properties Limited (BPL) and Coastal Commercial & Exim Limited (CCEL) have approved the proposed scheme of amalgamation between CCEL and BPL.

Bata Properties Limited (BPL) is wholly owned subsidiary of Bata India Limited and Coastal Commercial & Exim Limited (CCEL) is a wholly-owned subsidiary of BPL.

Upon completion of the said amalgamation, CCEL will cease to be a subsidiary of BPL and in turn of the Company.

Bata India in its filing to bourses said, "Bata Properties Limited (BPL) and Coastal Commercial & Exim Limited (CCEL) at their respective Board Meetings, held on September 16, 2020, approved the proposed Scheme of Amalgamation between CCEL ("Transferor Company") and BPL ("Transferee Company") pursuant to the provisions of Section 233 of the Companies Act, 2013 (as amended) (including rules made thereunder), subject to necessary approvals and compliances.

The amalgamation of CCEL with BPL is proposed to lead to accomplishing the following objectives:

1) Simplification of the corporate structure and thereby reducing the number of entities in the Group.

2) Eliminating corporate redundancies, such as duplicate workstreams related to corporate governance, compliances and risk management (including accounting, reporting requirements, statutory and internal audit requirements, tax filings, etc.) and related costs, reduction in operational and administrative expenses and overheads, better cost and operational efficiencies and it would also result in coordinated optimum utilization of resources thus leading to operational effectiveness and cost optimization.

3) More efficient utilization of existing resources available with the companies by accessing the resources, marketing and service delivery capabilities, which would entail growth of the business of the consolidated entity.

4) Achievement of greater management focus and control over the combined business operations and further, reduction in the cost of overheads.

The footwear maker in its release said, no shares of the transferee company shall be allotted under the scheme of amalgamation, in lieu of exchange of the shares of the transferor company because the transferor company is a wholly-owned subsidiary of the transferee company.

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