Veritas (India) Limited on Wednesday announced that its Board of Directors has granted in-principle approval for the transfer and disposal of certain assets and liabilities of its material subsidiary, Verasco FZE, based in the UAE.
Under the proposed transaction, Veritas plans to transfer assets of Verasco FZE valued at up to $130 million (approximately ₹1,170 crore) and liabilities of up to $80 million (approximately ₹720 crore) to Inergy FZE, Sharjah, UAE. The transaction carries a base consideration of USD 50 million (around ₹450 crore).
Given that Verasco FZE is classified as a material subsidiary, the proposed transaction is subject to shareholder approval. Veritas (India) Limited stated that it will seek consent from shareholders through a special resolution to be passed via postal ballot and remote e-voting.
The company clarified that the board approval is in-principle and that the transaction will be completed only after the execution of definitive agreements and fulfillment of all applicable regulatory and statutory requirements. The final consideration may also be revised based on mutual discussions with Inergy FZE.
The proposed resolution relates to the sale, disposal and leasing of assets exceeding 20% of the total assets of a material subsidiary, in line with regulatory norms. The process for shareholder approval is expected to be initiated in due course.