Question: Recently the Aditya Birla Group announced a plan to merge Aditya Birla Nuvo Ltd (ABNL) with which of the following companies?
(a) Grasim Industries Ltd
(b) UltraTech Cement
(c) Birla Sun Life Insurance
(d) Aditya Birla Financial Services Ltd
Ans: (a)
Related facts:
- On 11 August 2016 the Boards of Directors of Grasim Industries Limited (“Grasim”), Aditya Birla Nuvo Limited (“ABNL”) and Aditya Birla Financial Services Limited (“ABFSL”) at their respective meetings approved the merger of ABNL into Grasim.
- Under this plan, the financial services business will be demerged into a newly formed company — Aditya Birla Financial Services Ltd (ABFSL), which will be listed separately.
- The subsequent demerger & listing of its financial services business through a composite scheme of arrangement (“Scheme”).
- In aggregate, anyone holding 100 ABNL shares will receive 30 shares in Grasim and 210 shares in ABFSL.
- The board of Grasim has also recommended sub-division of its equity shares of Rs 10 each into five equity shares of Rs 2 each.
- Kumar Mangalam Birla, Chairman, Aditya Birla Group, said that the transaction was aimed at finding synergies between the various companies in the group and at unlocking value.
- Post-restructuring, promoters will own 17 per cent in the financial services business; Grasim will own 57 per cent.
Reference:
http://www.adityabirla.com/media/press-releases/creating-a-premier-play-on-Indias-growth
http://www.ptinews.com/news/7755950_Aditya-Birla-Nuvo-to-merge-with-Grasim-Industries.html