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Grasim-AB Nuvo merger, financial arm spin-off get shareholder nod

 
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The Economic Times
12 April 2017

Mumbai: The shareholders of Grasim Industries, Aditya Birla Nuvo (ABNL), and Aditya Birla Financial Services approved the merger of Grasim with Aditya Birla Nuvo, and also signed off on the proposal to carve out and list of the financial business of the diversified grouping.

With all major approvals in place, the merger and split-off proposal is subject to final approval from the National Company Law Tribunal and the two major bourses, the BSE and the NSE, the companies said in a statement. The proposal is expected to be effective during the second quarter of the current financial year.

“It augurs well that the public shareholders of both Grasim and ABNL have approved the merger by much more than the requisite majority. The merger will create one of India’s largest companies,” said Kumar Mangalam Birla, Chairman at Aditya Birla Group. “It will undeniably lead to shareholders’ value by bringing together the strong balance sheet of Grasim and the high growth potential of ABNL’s businesses.”

The deal helps the Birla family tighten their hold on the conglomerate, whose businesses range from textiles to telecom. According to Birla, the merger will have greater access to funding options that would bankroll future expansions in India.

 


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