There will be no cash outflow from Maruti Suzuki as the merger is proposed to be effected through a share swap agreement with a ratio of 1:70
New Delhi: India's largest carmaker Maruti Suzuki on Tuesday said its sister concern Suzuki Powertrain would merge with the company taking its its Japanese parent Suzuki Motor Corp's stake to 56.2% from 54.5%, reports PTI.
"The Board of Directors of Maruti Suzuki India (MSI) today approved a proposal to merge Suzuki Powertrain India Ltd (SPIL) with MSI," the company said in a statement.
SPIL, which supplies diesel engines and transmissions to MSI, is a subsidiary of Suzuki Motor Corp (SMC).
SMC holds a 70% stake in SPIL, while the rest is held by MSI, it added.
"Consequent to the merger, SMC's holding in MSI will go up from 54.2% to 56.2%... MSI proposes to make a fresh issue of 13.17 million shares to SMC in lieu of SMC's 70% holding in SPIL," MSI said.
The domestic car market leader said there will be no cash outflow from MSI as the merger is proposed to be effected through a share swap agreement.
As per the understanding, the swap ratio has been fixed at 1:70, which means SMC will receive one share of MSI of Rs5 each for every 70 shares of Rs10 each it holds in SPIL.
"It is expected that the necessary regulatory approvals and legal requirements for the merger may be completed by end December 2012. Once the merger is approved, the books of accounts of SPIL will be merged with MSI with effect from 1 April 2012," the company said.
"There are no plans to reduce jobs, following this merger," it added.
With completion of this merger, MSI will bring its entire diesel engine capacity under a single management control.
"All key initiatives to strengthen the business, including sourcing, localisation, production planning, manufacturing flexibility and cost reduction can be controlled, monitored and improved by the MSI management," the company said.
MSI further said the proposed merger will also benefit the combined entity through synergies in areas like finance, capital structuring, administration and consequent reduction of transaction costs.
Reacting to the announcement, the shares of MSI were trading 1.14% up at Rs1,121.90 apiece on the BSE in the afternoon.
Komli Media said this financing will allow it to materially scale its platform and operations by investing in its real-time bidding, data, analytics, and retargeting solutions to improve ROI for advertisers and yield for publishers
Mumbai: Media technology company Komli Media on Tuesday said it raised $39 million in a new round of investment led by Norwest Venture Partners, which will help it expand its presence and strengthen its technology platform, reports PTI.
Norwest Venture Partners, an already existing investor, led the current round of investment, along with Helion Venture Partners, Draper Fisher Jurvetson, and Western Technology Investment, it said in a statement issued here.
"This financing will allow us to materially scale our platform and operations by investing in our Real-Time Bidding (RTB), data, analytics, and retargeting solutions to improve ROI for advertisers and yield for publishers," the company's chief executive Prashant Mehta said.
In the statement, the company -- which offers solutions across display, mobile, video, social, search and data for advertisers, agencies, and publishers -- claimed it has grown 150% annually since 2009.
It now has over 5,000 leading publishers including exclusive relationships with Facebook and MSN and reaches 270 million users monthly, servicing 1,000 advertisers.
Raymond conducted a search for a new ‘Complete Man’ ad through a first-of-its-kind model hunt through Facebook this year
Mumbai: Raymond Ltd, world's largest producer of worsted suiting fabrics said its ad spend on social media is likely to grow by 400%, reports PTI.
The company had spent about Rs35 crore on advertising and marketing last fiscal of which Rs5 crore was on social media which was witnessing 400% growth in the first quarter of this fiscal, according to a press note issued.
The company conducted a search for a new 'Complete Man' ads through a first-of-its-kind model hunt through Facebook in first quarter of FY13 and for which it attracted hundreds of responses from young male models from across India, it said.
A report 'Explosion of Social Media: Transforming the Corporate Business Scenario,' released by ASSOCHAM in late 2011 observed that majority of start-ups, leading national and international companies operating in India are embracing social media to enhance their business and on an average spending anywhere between Rs2 lakh to Rs50 lakh a year on social marketing campaigns.