Indian Rayon to issue one equity share for Indo Gulf

21 Nov '05

2 min read

Indian Rayon And Industries Limited is Aditya Birla group companies.

The company moved a step further with Indian Rayon shareholders approving the scheme for amalgamation. Indian Rayon informed the stock exchanges that at a court convened meeting held on November 16, the shareholders approved the scheme of amalgamation between Birla Global Finance and Indian Rayon and also the merger between Indo Gulf Fertilisers and Indian Rayon, with requisite statutory majority.

Meanwhile, Birla Global Finance stated that it will hold a meeting of equity shareholders on November 24 to approve the same. The proposed three-way restructuring is valued at over Rs 5,000 crore.

The restructuring is supposed to take place under two separate schemes. Under one scheme, Indian Rayon will issue one equity share of the company to Indo Gulf shareholders for every three equity shares they hold.

Under the second scheme, Indian Rayon will also issue to Birla Global Finance shareholders one equity share of Indian Rayon for every three equity shares of Birla Global Finance. The swap ratio is expected to translate into a reasonable premium to both Indo Gulf and Birla Global Finance shareholders, based on the current Indian Rayon share price.

Indian Rayon And Industries Limited is a leading player in the key businesses of viscose filament yarn, carbon black, insulators, garments and textiles.

The Economics Times

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