Drug firm Abbott India today said its board has approved a proposal to amalgamate the company with Solvay Pharma under a 2:3 share swap ratio.
"The swap ratio for the merger is 2:3... Every two share (s) of Solvay Pharma India Ltd will entitle their holder to three shares of Abbott India Ltd," Abbott said in a filing to Bombay Stock Exchange (BSE).
It said the board of Solvay has also approved the merger of both companies.
The draft scheme of amalgamation has been approved under sections 391 to 394 of the Companies Act, 1956, it added.
The swap ratio for the merger was recommended by Ernst & Young for Abbott India and Pricewaterhouse Coopers for Solvay Pharma, it said.
UBS Securities provided fairness opinions on the valuation of assets and shares to the board of Solvay Pharma, while DSP Merrill Lynch provided the same service to the board of Abbott India, it added.
Shares of Abbott India touched a 52-week high of Rs 1,699.90 on the BSE today and later settled at Rs 1,472.75, up 3.32 per cent from the previous close.