NEW DELHI: In a massive rejig, Aditya Birla NuvoBSE -18.40 % has been merged into Grasim IndustriesBSE -1.34 % to unlock value.
“The merger will unlock value for shareholders,” said Kumar Mangalam Birla, Chairman of the Aditya Birla Group.
We have chalked down the ten important things you must know about the deal.
1) The corporate reorganisation will see the demerger of Aditya Birla Financial Services from AB Nuvo and that separate entity will be listed on stock exchanges.
2) Post demerger, AB Nuvo which is a listed entity will be merged into Grasim Industries to create a $11 billion valuation company.
3) For every 10 shares of AB Nuvo held by you, you will get three shares of Grasim Industries.
4) For every one share held of Grasim Industries, you will get seven shares in the demerged entity Aditya Birla Financial Services.
5) For shareholder of AB Nuvo, for every ten shares held by them, they will get 21 shares of Aditya Birla Financial Services.
6) Grasim Industries will hold 57 per cent stake in Aditya Birla Financial Services.
7) Aditya Birla Nuvo will foray into solar, payments banks and health insurance business.
8) AB Nuvo has got approval for health insurance business with MMI will commence operations in second half of ongoing financial year.
9) Grasim Industries has surplus cash of Rs 460 crore on the net basis.
10) New company AB Financial Services will have no exposure to debt of Idea CellularBSE -0.63 %
Recent Articles on M&A
Source: Economic Times
