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Maruti to be privatised on Thursday

Maruti Udyog Ltd will be privatised on Thursday with Suzuki Motor Corporation chief O Suzuki scheduled to hand over a cheque of Rs 10 billion to the government in exchange for the proposed rights issue by which the Japanese company would get majority stake and management control in the joint venture.

Suzuki will call on the Divestment Minister Arun Shourie on Thursday morning. Maruti, in which the Japanese partner would increase its stake from 50 per cent to 54.2 per cent after the rights issue, would also have its first board meeting on Thursday, sources said.

The meeting would decide on reconstitution of the board after the rights issue as government, it is understood, would withdraw all its directors except two part-time officials.

The government has currently four full-time directors. In the reconstituted board, Heavy Industry Ministry officials Pradeep Kumar and K K Jaiswal are likely to be nominated as part-time directors.

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