About 83 percent of ABNL minority shareholder votes cast were in favor of a proposal to merge with affiliate Grasim, according to a statement from ABNL Monday. Grasim’s minority shareholders already voted their consent to the merger plan, according to an April 6 statement. The transaction still needs approvals from the company law tribunal, markets regulator, and exchanges.
The deal, an overhaul that also involves the spinoff of a financial services unit currently under ABNL, would help tighten the tycoon’s grip on a conglomerate with more than $40 billion in annual revenue. The transaction would increase Birla family stakes in the new entity to 39 percent from the 31 percent it holds in Grasim, according to a company presentation. ABNL has stakes in companies ranging from a mobile-phone operator to a life insurer.
Both Grasim and ABNL shares have since recovered to levels near where they were before the merger announcement. ABNL shares fell 0.1 per cent to Rs 1,559.50 at 10:54 am in Mumbai on Tuesday. Grasim was down 0.2 per cent.
ABNL shares fell 0.1 per cent to Rs 1,559.50 at 10:54 am in Mumbai on Tuesday. Grasim was down 0.2 per cent. Birla has been making deals across his businesses. He’s in the process of combining his mobile-phone unit Idea Cellular with Vodafone Group Plc’s Indian business to form the nation’s largest wireless carrier. ABNL-controlled UltraTech Cement Ltd bought cement units from debt-laden Jaiprakash Associates Ltd. last year.
Source: Business-Standard