JAL gets HC nod for merger of group firms with itself

Diversified infrastructure group Jaiprakash Associates (JAL) today said it has received approval from the Allahabad High Court for the proposed merger of four group companies with itself.

In a filing to Bombay Stock Exchange, JAL said the scheme for amalgamation of Japyee Cement (JCL), Gujarat Anjan Cement (GACL), Jaypee Hotels (JHL) and Jaiprakash Enterprises (JEL) with it (JAL) has been sanctioned by the Allahabad High Court on May 15, 2009.

JAL said it has fixed June 12 as the record date for transferring of shares for the merger.

Upon execution of the scheme, for every one share of Rs 10 in JHL, one share of Rs 2 of JAL will be allotted, while for every ten equity shares of Rs 10 each in JCL, one equity share of Rs 2 of JAL would be allotted, it said.

Also, for one share of Rs 10 in JEL, three shares of Rs 2 each in JAL would be allotted, while for every 11 shares of Rs 10 each in GACL, one share of JAL would be allotted, it added.

The company said upon the scheme coming into effect, all the assets and liabilities and employees of the transferor companies would be merged with its own.

"The amalgamation would enable realisation of substantial benefits of greater synergies between business of companies and will result in consolidation of cement business under one roof," JAL said.