Subsidiaries of Gillanders Arbuthnot undergo amalgamation

Gillanders Arbuthnot and Company Limited’s subsidiaries are undergoing a scheme of arrangement which has been approved by High Court at Malawi.

The said scheme of arrangement is by and between the companies named Naming’omba Tea Estate Limited (NTEL), Group Developments Limited (GDL), Mafisi Tea Estates Limited (MTEL) and Group Holdings Limited (GHL) and their respective shareholders.

Under the scheme, NTEL, MTEL and GHL which are wholly-owned subsidiaries of GDL would get amalgamated with GDL effective from April 1, 2019. GDL is a step-down non-material foreign subsidiary of Gillanders Arbuthnot & Co. Ltd.

All the above companies deal in production of Tea and Macadamia at Malawi. The objective of the amalgamation is to simplify the group structure at Malawi and to rationalise the financial and human resources used for carrying out the business activities. Post the restructuring scheme, there would be no change in the shareholding of the company in GDL.

Gillanders Arbuthnot and Company is a small cap with a market cap of Rs. 109 crore. It is engaged in the business of yarn, cultivation, manufacture and sale of tea and other construction activities.

On Wednesday, the stock opened gap-down at Rs. 48 per share, plunging by 14.8 per cent from its Tuesday's close of Rs. 56.40 per share on BSE.