The Board of Directors of United Spirits
has approved a scheme of amalgamation and arrangement in relation to the proposed merger of the Company's listed subsidiary Pioneer Distilleries Limited
(PDL) with the Company under Sections 230-232 and other applicable provisions of the Companies Act, 2013, and rules thereof.
Further, the Board has authorized the company to file the scheme along with the relevant disclosures, documents, certifications and undertakings with the stock exchanges, the company said in the filing.
The scheme is subject to the receipt of requisite approvals from the relevant statutory authorities including SEBI, National Stock Exchange of India Limited, BSE Limited, the National Company Law Tribunal, and the respective shareholders and creditors of the Company and PDL, the company said.
“10 equity shares of Rs2 each of USL, to be issued for every 47 equity shares of Rs10 each held by shareholders of the Company, in the ratio of 1:4.7 to the shareholders of the Company, as on the record date fixed for this purpose,” Pioneer Distilleries stated.
Reacting to this news, shares of both the companies fell in today’s trade on the BSE.
United Spirits Ltd is currently trading at Rs595, down by Rs8.65 or 1.43% from its previous closing of Rs603.65 on the BSE. The scrip opened at Rs609.65 and has touched a high and low of Rs609.65 and Rs592.50 respectively.
Pioneer Distilleries Ltd is currently trading at Rs130.70, down by Rs6.85 or 4.98% from its previous closing of Rs137.55 on the BSE. The scrip opened at Rs140.05 and has touched a high and low of Rs144.40 and Rs130.70 respectively.