BASF board okays amalgamation scheme

Specialty products maker BASF Chemicals today said its board has approved the scheme of amalgamation for the merger of three group subsidiaries with the parent company.

The board of directors of the company, at its meeting held yesterday, has approved the scheme of amalgamation of BASF Coatings, BASF Construction Chemicals and BASF Polyurethanes India, being the transferor companies, with BASF India, the transferee company, BASF said in a filing to the Bombay Stock Exchange.

Under the scheme, the company would allot one equity share of BASF India of Rs 10 face value to shareholders having 60 shares of BASF Coating with a face value of Rs 10 each.

In addition, the company would give 10 shares of BASF India for every 13 shares of BASF Construction Chemicals, the filing said, without disclosing the financial details.

"The share exchange ratio has been determined by independent valuers, viz Ernst & Young and Deloitte Touche Tohmatsu India," it added.

The amalgamation is subject to requisite approvals and sanctions as may be necessary, BASF said.

BASF India is the flagship company of the BASF Group in India and it manufactures and markets expandable polystyrene, tanning agents, leather chemicals, specialty chemicals and crop protection chemicals.