Categories: Approval

DIL Ltd. approves Scheme of Amalgamation with subsidiary, Fermenta Biotech Ltd.

~Amalgamation to be value accretive to shareholders in addition to other benefits~

Mumbai, June 24, 2018: DIL Ltd. (BSE: DIL) today announced that the Board of Directors at its meeting held on June 21, 2018 has approved the Scheme of Amalgamation (‘Scheme’) with its subsidiary, Fermenta Biotech Ltd. (FBL) which is engaged in manufacturing and marketing of bulk drugs including Vitamin D3 and enzymes. Under the terms of the Scheme, 100 equity shares of DIL of Rs.10 each fully paid up would be issued for every 1,006 equity shares of FBL of Rs.10 each fully paid up.

However, as the Board had at its meeting held on June 18, 2018 recommended the split/sub-division of shares of DIL Ltd. from face value of Rs.10 (Rupees Ten) each to face value of Rs.5 (Rupees Five) each, and issue of Bonus equity shares in the proportion of 1:1, the number of shares to be issued to FBL shareholders would also undergo a change i.e. 100 equity shares of DIL of Rs.5 each fully paid up would be issued for every 251 equity shares of FBL of Rs.10 each fully paid up.

The Amalgamation will be value accretive to shareholders of DIL Ltd., as they would have directly access to the core business of the Group. The greater integration and increased financial strength and flexibility for the amalgamated entity would result in maximising overall shareholder value. The greater efficiency in cash management of the group and unfettered access to cash flow generated by the combined business will allow it to be deployed more efficiently to fund organic and inorganic growth opportunities, to maximize shareholder value. The pooling of human capital having diverse skills, talent and vast experience would result in improved organizational capability and leadership, allowing the company to compete successfully in an increasingly competitive industry. In addition, more focused operational efforts, rationalization, standardisation and simplification of business would result in substantial cost savings.

The post-merger shareholding of the Promoters in DIL Ltd. would be 58.93% (existing: 62.59%).

The scheme is subject to other necessary statutory approvals including the approval of the National Company Law Tribunal Bench at Mumbai.

Corporate Comm India(CCI Newswire)

The Pharma Times News Bureau

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