Godrej Industries approves merger of group companies + Swap Ratio

May 28, 2009 · Author: · Category: retail 

Godrej Industries has announced that the board of the company has given its nod for the merger two group companies with Godrej Consumer Products (GCP).

As per the approval, Godrej Consumer Biz (GCB), a 100% subsidiary of Godrej & Boyce Manufacturing Company and Godrej Hygiene Care (GHC), a 100% subsidiary of Godrej Industries will be merged with the GCP along with transfer of their assets and liabilities to the consumer products major, on June 1, 2009.

GCB and GCH hold 29% and 20% in Godrej Sara Lee (GSL) which is a 49:51 joint venture (JV) between the Godrej Group and Sara Lee Corporation, US. Post merger GCP will directly hold 49% stake in GSL. The promoters’ stake in GCP will go up to 74.77% from current 69.73% once the merger is concluded.

The swap ratio for both the companies has been fixed at 10:11 i.e. the shareholders of GCB and GHC will receive 10 shares of GCP for every 11 shares held.

Comments

Leave a Reply