Valiant Organics Details Settlement Plan for Cessation as Partner of Dhanvallabh Ventures LLP
Valiant Organics Limited has clarified the financial and structural details regarding its proposed material related party transaction involving its cessation as a partner of Dhanvallabh Ventures LLP (DVLLP). The clarification outlines the comprehensive settlement mechanism approved by the company's Board of Directors.The Board of Directors accorded its approval to proceed with the proposed material related party transaction with DVLLP. This transaction is structured to occur at fair market value and on an arm's length basis, facilitating Valiant Organics Limited's withdrawal as a partner from DVLLP.
According to the revised details, the total settlement amount attributable to the Company, covering its capital contribution and its share in the undistributed profits or losses in DVLLP, will be discharged by way of transfer from DVLLP to Valiant Organics Limited.
The consideration package involves a dual mechanism:
1. The transfer of 1,86,07,531 equity shares of Valiant Laboratories Limited from DVLLP to the Company.
2. An adjustment payment of Rs. 6,34,34,544/- payable by the Company to DVLLP, reflecting the Company's proportionate capital contribution upon cessation.
The expected timelines for the transaction are also outlined. The definitive documents detailing the cessation and settlement of the Settlement Amount are proposed to be executed upon the finalization of terms. The transaction is projected to be completed on or before a date to be agreed in the definitive documents, and specifically within 60 days of the receipt of shareholders' approval. The cessation of the Company from DVLLP and the transfer of the equity shares of Valiant Laboratories Limited are expected to become effective on the Effective Date specified in the definitive documents.
VALIANTORG Stock Price Movement
Today, Valiant Organics Limited shares shed 2.26% to settle at ₹284.75 in post-market trading. The stock saw total trading volume of 24,569 shares during the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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