Varun Splits into Two
Mumbai-based shipping firm Varun Shipping Co. Ltd will be split into two listed entities after the Bombay high court approved a demerger scheme.
The Company announced that according to the Composite Scheme of Arrangement and Amalgamation, the Company will be split into two separate listed entities, namely, Varun Global (ship management and shipping investment business) and Varun Resources (shipping business).
Both the hived off companies will be independently listed on the stock exchange. Currently these companies are in the process of completing the formality of allotment of shares.
As part of the scheme, the debt relating to the shipping business have been transferred to Varun Resources, which has successfully restructured its debt through joint lending forum (JLF) mechanism formulated by the Reserve Bank of India.
Yudhishthir D. Khatau, chairman and managing director of Varun Shipping, said one company will provide crew to shipping companies and the other will be a pure shipping business. He did not disclose details, citing regulatory norms ahead of listing two companies.
Varun Shipping is the largest owner of vessels that can transport liquefied petroleum gas (LPG) in India.