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| Bajaj Hind gets shareholders' nod for merger with BHSIL |
| Press Trust of India / New Delhi Sep 08, 2010, 22:11 IST |
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The country's largest sugar-maker, Bajaj Hindusthan (BHL), has received shareholders' approval for the merger of group firm Bajaj Hindusthan Sugar and Industries (BHSIL) with itself to consolidate its position in the Indian sugar market.
"All equity shareholders, secured creditors and unsecured creditors present either in person or by proxy voted in favour of the resolution," BHL said in a communique to the stock exchange today.
The board of directors of the two firms had cleared the merger proposal on June 17 along with a recommendation for a share swap ratio of one share of BHL for every five shares of BHSIL. BHL holds a 75 per cent stake in BHSIL.
Following the merger, BHL would have a total sugarcane crushing capacity of 1.36 lakh tonnes per day, a distillery capacity of 800 kilolitre and bagasse-based co-generation thermal power capacity of 105 Mw.
"Upon merger, the combined capacities of BHL and BHSIL... will strengthen BHL's position in India's sugar sector and will enable the company to further enhance the overall shareholder value," BHL Joint Managing Director Kushagra Bajaj had said.
The amalgamation would result in the creation of a single larger entity in place of two smaller entities carrying on a similar business under the same management and control.
The merger will result in rationalisation of operations, better profitability, enhanced production capacity and a stronger competitive position, Bajaj had added.
Currently, BHL is India's largest sugar producer with a total crushing capacity of 96,000 tonnes per day at its ten plants in Uttar Pradesh (UP). BHSIL has four sugar plants in UP with a total crushing capacity of 40,000 tonnes per day.
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