|
JM Financial Group Restructures its Business Interests Under One Umbrella
JM Financial to be the Flagship Holding Company
Mumbai, September 16, 2005: The Board of Directors of JM Financial Ltd. ("JM Financial") and J.VI. Securities Private Limited ("J.M. Securities"), in separate meetings held on September 16. 2005 in Mumbai, have decided in- principle to merge their operations under the JM Financial umbrella.
The Board of JM Financial has appointed M. P. Chitale & Associates. Chartered Accountants to recommend a fair share swap ratio for the merger which will be considered by the Board at its meeting to be convened at a later date. The merger of J.M. .Securities with JM Financial shall be subject to satisfactory receipt of all the statutory, regulatory, corporate and other approvals as may be required, including, but not limited to. the approvals of the relevant High Court, the Reserve Bank of India, the Stock Exchange(s), Securities & Exchange Board of India, the respective Boards and Shareholders and also subject to a fair share swap ratio. J.M. Securities currently holds, inter-alia. investments in Investment Banking, Retail Broking & Fixed Income Broking businesses (which are part of the joint venture between JM Financial Group and Morgan Stanley) and will hold investments in Asset Management and Equity Financing Services.
Commenting on the proposed restructuring and merger. Mr. Nimesh Kampani. Chairman of JM Financial, said "Our objective is to bring all our business interests under one common umbrella. With this restructuring. JM Financial will be the holding company of JM Financial Group and will be a diversified player having business interests in investment banking, asset management, retail and institutional equity broking and fixed income broking."
Mr. Vishal Kampani. Director of J.M. Securities, said "Over the next few years, we not only want to consolidate our existing market position but also intend to expand in areas such as commodities, private equity and equity financing services. This restructuring and proposed diversifications will go a long way in derisking and synergizing our businesses."
|