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Max Ventures and Industries to integrate with subsidiary Max Estates

Max Ventures and Industries

Max Ventures and Industries to amalgamate with subsidiary Max Estates

Max Ventures and Industries Ltd announced on Tuesday that its board of directors has approved the company’s merger with its wholly-owned subsidiary Max Estates Ltd as part of the group’s restructuring effort to focus solely on real estate. Max Ventures and Industries announced its retirement from the speciality packaging film market in November. As part of the firm’s plan to focus solely on the real estate industry, the company sold its entire 51 percent ownership to Japanese joint venture partner Toppan Printing for Rs 600-650 crore. Its board of directors then directed the Investment and Finance Committee to investigate different restructuring options with Max Estates Ltd and rename the company Max Estates after acquiring the necessary statutory approvals. 
 
The company’s board of directors approved the “composite scheme of merger and arrangement amongst Max Ventures and Industries Ltd and Max Estates Ltd and their respective shareholders and creditors” during a meeting on April 18, according to a regulatory filing. 
 
Max Ventures and Industries Ltd (MVIL or transferor business) and Max Estates Ltd are merging under the programme (MEL or transferee company). 
 
MEL or the transferee firm will issue its equity shares to the equity shareholders of MVIL or the transferor company in exchange for the merger. For each equity share held in MVIL, owners will get one fully paid-up and credited MEL share. 
 
The transferor corporation will be automatically dissolved without being wound up once the scheme takes effect. In addition, the transferor firm’s shares in the transferee company will be terminated and annulled.

Max Ventures and Industries

According to the filing, “management deliberated that the scheme is a part of an overarching re-organization plan to rationalize and streamline the existing group structure.” 
 
The merger would result in the simplification of the existing holding structure and the lowering of shareholding tiers, removing any obstacles to future expansion plans and increasing shareholder value. 
 
Consolidation of enterprises will result in higher operational synergies and efficiencies at numerous levels of corporate operations, as well as considerable growth impetus. 
 
“The merger would result in the efficient pooling of financial resources, resulting in centralized and more efficient fund management, greater economies of scale, and a larger and stronger resource base for future growth, which are currently divided amongst two separate corporate entities within the group.” 
 
MVIL and MEL operate complementary businesses that can be integrated for the mutual benefit of the shareholders.

In November, Sahil Vachani, MD and CEO of Max Ventures and Industries, said, The decision to sell the remaining 51 percent of the specialty packaging business to an existing partner was made to free up more funds to invest in the real estate sector, which has significant development potential.” 
 
The business claimed it would be able to generate a war chest of more than Rs 1,000 crore as a result of the sale, which it would use to expand its residential and commercial real estate portfolio in Delhi-NCR. 
 
The company’s first ‘Grade-A’ office complex in Noida, ‘Max Towers,’ which has a total area of roughly 6-7 lakh square feet, is virtually totally leased. 

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