India Cements to Demerge Chennai Super Kings Into Subsidiary
The company had successfully bid for the Chennai franchise in 2008 for $91 million. The amount will be paid over a ten year period.
Cement major India Cements on Tuesday said it would demerge the Chennai Super Kings (CSK) division into a wholly-owned subsidiary.
In a statement filed with the Bombay Stock Exchange (BSE), the company said: "Our company presently owns Chennai Super Kings (CSK) - BCCI-IPL Franchise 20/20 Cricket Tournament Team. We propose to demerge the said CSK Division to a wholly-owned subsidiary of our company."
The company said the demerger proposal has been included for consideration of the board of directors slated for Sep 26.
Company officials had earlier said the CSK had given its cement brands good exposure in various markets.
The company had successfully bid for the Chennai franchise in 2008 for $91 million. The amount will be paid over a ten year period.
For the June ended quarter this fiscal, the company had posted a loss of Rs.2.96 crore on a net sales of Rs.1,226.24 crore.
The company's scrip closed at Rs.121.85 Tuesday.