Asahi India, Floatglass Boards Okay Merger

The boards of Asahi India Glass Ltd and Floatglass India Ltd (FGI) have approved their amalgamation. The appointed date for the merger is proposed to be April 1, 2002, a company release said.

As part of the merger, Asahi will issue three equity shares of Re 1 each and four 10 per cent cumulative redeemable preference shares of Rs 10 each to the shareholders of FGI for every eight FGI equity shares of Rs 10 each held by them.

This represents a premium of 21 per cent over the closing price of a equity share of FGI on January 29, 2003, the release added.

 

Asahi India currently holds 79.6 per cent equity in FGI, which it had acquired in 2001 pursuant to initiatives of Asahi Glass Company (AGC), Japan to restructure its Indian operations.

Under the proposed scheme, this holding of equity by Asahi India in FGI would stand cancelled. Thus, the paid up equity capital of Asahi India would increase from the current Rs 7.4 crore to Rs 8 crore.

The merger would also entail issue of preference shares of Rs 8 crore by Asahi India. The preference shares will have a tenure of 12 months and would carry a dividend of 10 per cent, the statement said.