Delhi High Court to approve merger of Siel Ltd and Mawana Sugars Ltd

Siel Ltd has announced that the Scheme of Arrangement for amalgamation of Mawana Sugars Ltd (MSL) with the Company (Siel Ltd) came up for final hearing in the Hon'ble High Court of Delhi on September 11, 2007.

After hearing the Counsels and perusing the records, the Hon'ble Court announced that it will pass the necessary order of sanction of Scheme.

On the Scheme becoming effective, the Company shall proceed to allot shares to the eligible shareholders as per the provisions of the Scheme.

Further, the Scheme of Arrangement, for amalgamation of Mawana Sugars Ltd (MSL) with Siel Ltd (Siel) and reduction of share capital of Siel Ltd after amalgamation (Scheme), which inter alia, envisaged the following:

a. 3 New Equity Share of Rs 10 each fully paid-up of Siel, Transferee Company for every 2 equity shares of Rs 10/- each fully paid-up held in MSL, the Transferor Company.

b. The equity share capital of the Transferee Company after cancellation of cross holdings but including the Exchange Shares entitlement as above shall become Rs 73,95,08,081 comprising of 7,39,50,808 equity shares of Rs 10/- each as fully paid up which shall be reduced to Rs 24,63,86,251 comprising of 2,46,38,625 equity shares of Rs 10/- each as fully paid up.

Consequent to the reduction of Share Capital, the Transferee Company, upon coming into effect of this Scheme, will actually issue and allot:

a. On the date to be fixed by the Board of Directors of the Transferee Company ("Record Date") 1 New Equity Share of Rs 10 each fully paid-up of Transferee Company for every 2 equity shares of Rs 10/- each fully paid-up held in Transferor Company i.e. MSL.

b. On the date to be fixed by the Board of Directors of the Company ("Record Date") 1 New Equity Share of Rs 10 each fully paid-up of Transferee Company for every 3 equity shares of Rs 10/- each fully paid-up held in Transferee Company i.e. Siel.

SIEL Ltd stock was trading at Rs.25.45, up by Rs.0.25 or 0.99%. The stock hit an intraday high of Rs.26 and low of Rs.25. The total traded quantity was 20522 compared to 2 week average of 18510.

Mawana Sugars Ltd stock was trading at Rs.28.70, down by Rs.0.35 or 1.20%. The stock hit an intraday high of Rs.29.80 and low of Rs.28.60. The total traded quantity was 48771 compared to 2 week average of 39827.

Source : Equity Bulls

Keywords