With reference to the earlier announcement regarding Carborundum Universal Ltd (CUMI) is exploring the restructuring of the joint venture in China viz. Jingri-CUMI Super Hard Materials Co. Ltd. (Jingri), Carborundum Universal Ltd has now informed BSE that the "Division Agreement" has been signed with the joint venture partner China Metallurgical Geology Burea ("CMGB"). The salient terms of the Agreement are as follows:

The business of Jingri would be split into two viz. (i) Diamonds and Diamond Tools (ii) Abrasives.

The Diamond and Diamond Tools business (including all relevant fixed assets, current assets, liabilities, employees, contracts etc.) would be transferred to a separate Company to be formed and fully owned by CMGB. Similarly the Abrasives Business (including all relevant fixed assets, current assets, liabilities, employees, contracts etc.) would be transferred to a new Company to be formed under the name CUMI Abrasives and Ceramics China Ltd (CACCL). CACCL would be a subsidiary of CUMI, India (with a part of the shareholding being held by CUMI International Ltd, Cyprus, a 100% subsidiary of CUMI, India).

In respect of a few common assets, both newly formed entities would be entitled to use the facilities, the cost of which would be shared based on actual usage.

The Division Agreement is subject to all regulatory approvals both in China and India.

The effective date of the restructuring would be April 01, 2009 and the results of operations of the respective businesses from April 01, 2009 till the date of regulatory approval of the Division Agreement would be to the account of the respective Companies.

Dear Friends ,
I am holding this stock for more than 18 years .
I am just wondering what will be the net implications for this announcement in Indian market.

I also noted after this was declared price of CUMI is always going in upward direction.
it means its Chinese collaboration in business was a correct decision and market has welcomed separation form CUMI.
i need views for other board members.