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Empee Sugars and Chemicals Ltd has approved the merger of Empee Distilleries Ltd with itself, according to an announcement by it on the NSE. Empee Sugars' board has approved the composite scheme of arrangement which is subject to statutory approvals. The merged entity is to be called Empee Distilleries.
Following the merger, the assets and liabilities of Empee Distilleries would be vested with Empee Sugars. The share capital of Empee Sugars would be reorganised with one share of Rs 10 being issued for every two shares cancelled. This will bring down the equity capital to 209.86 lakh shares of Rs 10 each.
As consideration for the merger, four equity shares of Rs 10 each would be issued for every equity share held in Empee Distilleries.
Empee Sugars' share held by Empee Distilleries would be cancelled following the merger and the promoter shareholding in Empee Distilleries would come down to 65.93 per cent in the merged entity against the present holding of 71.10 per cent.
The fully diluted equity capital of the company is 419.72 lakh shares prior to the reduction in capital under the merger scheme. This will increase following the amalgamation to 837.71 lakh.
The two sugar units of Empee Sugars at Naidupet and Ambasamudram will be demerged into a separate wholly-owned subsidiary.
On the NSE the Empee Distilleries shares closed at Rs 69.30 against the previous close of Rs 68.20. Empee Sugars' shares closed at Rs 13.50 (Rs 12.95).
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