The RPG group has approved a three-way merger of its cable companies Asian Cables and Upcom Cables with RPG Telecom. This was approved at a board meeting of the three companies in Mumbai yesterday. The board also recommended a share swap ratio of 1:2:5.
Each shareholder will get one RPG Telecom share for every five shares of Asian Cables.
Each Upcom Cables shareholder will get one RPG Telecom share for every two shares of Upcom.
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Scrips of the three firms were quoting at below Rs 20 a share at the Bombay Stock Exchange yesterday. RPG Telecom closed at Rs 17.5, Asian Cables at Rs 11.25 and Upcom Cables at Rs 15.75.
The merger will be effective from April 1,1996.