L&T Finance Holding's 3 firms to be amalgamated

L&T Finance Holdings today said three of its wholly owned subsidiaries have entered into an amalgamation agreement in which two of the units will merge into the third one - Family Credit.
"The Board of Directors of L&T Finance Holdings has taken note of the proposed amalgamation involving its wholly owned subsidiaries -- L&T Finance and L&T FinCorp (transferor companies) with Family Credit (transferee company)," the company said in a regulatory filing.
L&T Finance, L&T FinCorp and Family Credit are wholly owned subsidiaries of L&T Finance Holdings.
"Upon amalgamation, transferee company shall issue shares to L&T Finance Holdings (being the shareholder of the transferor companies), which shall continue to hold 100 per cent equity share capital of the transferee company," it said further.

L&T Finance Holdings said it is neither involved as a transferor company nor as a transferee company in the proposed scheme of amalgamation.
However, as a good corporate governance practice, the company was providing details about rationale of amalgamation, share exchange ratio etc, it added.

Amalgamation will lead to consolidation and help synergise integration of the businesses of transferor companies and the transferee company to enable better operational management and greater focus, simplification of group corporate structure, the company said.
Besides, it will help to better leverage capacity due to enhanced net worth base and reduce regulatory and compliance cost.

The consideration for restructuring contemplated under scheme is set as "350 equity shares in Family Credit for every 100 shares held in L&T Finance. And 147 shares in Family Credit for every 100 shares held in L&T FinCorp," L&T Finance Holdings said.
Equity shares of L&T Finance Holdings are listed on NSE and BSE. However, none of the three subsidiaries are listed on any of the exchanges.
However, debentures of L&T Finance are listed on NSE and BSE, while debentures of L&T FinCorp and Family Credit are listed on NSE.
L&T Finance Holdings share closed at Rs 88.45, down 1.23 per cent on BSE.