Acquisition approved of Castings Division,Kirloskar Oil Engines

Mumbai, June 9 (UNI) Kirloskar Ferrous Industries Ltd has informed BSE that the Board of Directors of the Company on June 08, 2006, has approved the acquisition of the Castings Division of Kirloskar Oil Engines Ltd at Shivashahi, Solapur with all its assets and liabilities for a consideration of Rs 210 million on such terms and conditions as may be decided between the Company and Kirloskar Oil Engines Ltd.

The acquisition of Castings Division of Kirloskar Oil Engines Ltd will form part of the objects of the forthcoming Rights issue and the consideration for the acquisition will be paid out of the proceeds of the forthcoming Rights issue, the release said.

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