ABNL's shareholders approve Grasim merger scheme

The $41-billion Aditya Birla Group on Tuesday said the shareholders of Aditya Birla Nuvo Limited (ABNL) approved the scheme of amalgamation with Grasim Industries Limited, followed by the demerger and listing of the financial services business, in line with the NCLT order and the SEBI requirements.

"The shareholders of Grasim Industries Limited, Aditya Birla Nuvo Limited and Aditya Birla Financial Services Limited (ABFSL) at their meetings held on April 6 and 10, 2017 respectively have approved the scheme of amalgamation of ABNL with Grasim followed by the demerger and listing of the Financial Services business, in line with the NCLT order and the SEBI requirements," the group said in a statement.

"It augurs well that the public shareholders of both Grasim and ABNL have approved the merger by much more than the requisite majority. The merger will create one of India's largest companies," Group's Chairman Kumar Mangalam Birla said.

He said the portfolio will now span the manufacturing and services businesses with leadership positions in the cement, financial services, telecom, textiles and chemicals sectors.

The merged entity Grasim, will have consolidated a turnover of Rs 59,766 crore, Ebitda of Rs 11,961 crore and a net profit of Rs 4,245 crore for the year ended March 31, 2016.

"With all major approvals in place, the scheme is subject to final approval from NCLT, BSE and the NSE. The scheme is expected to be effective during the second quarter of the current financial year," the group added.

--IANS

bdc/vgu/