Chennai, Feb 11 (IANS) The Board of Directors of India Cements Ltd. Wednesday approved a proposal to vest the ownership of Chennai Super Kings Cricket Ltd. with its shareholders.
In a filing with the Bombay Stock Exchange (BSE), India Cements said the board has approved a proposal for reorganisation of Chennai Super Kings Cricket Ltd., the company's wholly-owned subsidiary.
Under the proposal approved, "the ownership of the franchise will be held by shareholders of the India Cements Limited. This will be subject to all necessary approvals".
Last year, the India Cements board had approved the demerger of Chennai Super Kings (CSK - a division) into a wholly owned subsidiary by transferring the assets at net cost.
The effective date of transfer will be Jan 1, 2015, subject to all approvals.
Company officials had earlier said the CSK had given its cement brands good exposure in various markets. The company earned around Rs.166 crore from CSK.
India Cements had successfully bid for the Chennai franchise in 2008 for $91 million. The amount will be paid over a 10-year period.