Voting on Grasim-Aditya Birla Nuvo merger to begin 6 March1 min read . Updated: 01 Mar 2017, 09:58 PM IST
With the proposed merger, promoters are expected to hold 40.1% stake in the post-merger Grasim, compared with 31.28% now
Mumbai: Shareholders of Grasim Industries Ltd will begin voting on the company’s proposed merger with Aditya Birla Nuvo Ltd on 6 March. Voting will remain open for 30 days until 5 April, according to a stock exchange notice filed by Grasim.
The Kumar Mangalam Birla-led Aditya Birla Group announced this merger in August 2016 meant to bring together overlapping chemicals, viscose, and textile fibres business, and incorporate the more fast moving financial services business into a single listed entity that can raise funds independently from the market. The shareholder notice comes at a time when the group is in talks to merge Idea Cellular with Vodafone Group Plc.
With the proposed merger, promoters are expected to hold 40.1% stake in the post-merger Grasim, compared with 31.28% now. Grasim, now the lone holding company for the Aditya Birla Group, will in turn own 57.3% in ABFSL, which will hold the payments bank and all other financial services including the life insurance business. The group has proposed a 25.6% public shareholding in this company while 17.1% will remain directly with the promoter group.