The BM Khaitan-controlled Williamson MagorBSE 1.59 % Group's engineering arms and transmission tower maker EMC Ltd are being merged to create a giant engineering joint venture with a turnover of Rs 6,000-7,000 crore. According to a notice sent to stock exchanges, EMC, McNally Bharat Engineering (MBEL) and McNally Sayaji Engineering (MSEL) will merge into Kilburn Engineering.
While EMC is controlled by Manoj Toshniwal, Williamson Magor group owns MBEL, MSEL and Kilburn Engineering. According to some sources, the merged entity will be jointly run by the Khaitans and Toshniwal. The Khaitans and Toshniwal declined to comment on the issue. If approved, the merged entity will become a complete solution provider for power plants as well as power transmission units, material handling and specialised drying equipment.
They said the two parties decided to make Kilburn Engineering the holding company primarily because it does not have any crossholdings. EMC holds about 30% of McNally Bharat Engineering's equity capital, while McNally Bharat holds shares of McNally Sayaji. The Khaitans and the Toshniwals have decided to form a committee with representatives from the companies being merged.
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