Ruchi Soya gets board nod for merger with Palm Tech

Edible oil manufacturer Ruchi Soya today said it has approved the amalgamation of Palm Tech India Ltd (PTIL) with itself with effect from April 1, 2009.

In a filing to the Bombay Stock Exchange Ruchi Soya said the board has approved the amalgamation of PTIL with itself under which all the assets and liabilities of palm Tech would be transferred to Ruchi Soya.

As part of the merger, the shareholders of Ruchi Soya would received 25 shares in PTIL, while PTIL shareholders would receive 19 shares in Ruchi Soya.

"The merger of Palm Tech with our company is part of our strategy to accelerate our domestic presence in the oil palm cultivation and processing. This strategy of integration will benefit the company and will de-risk its existing business model and streamline the sources of supplies in volatile commodity price environment," Ruchi Soya MD Dinesh Shahra said.

PTIL has a palm mill in Andhra Pradesh, besides a leased mill in Karnataka.