Hospitality major Jaypee Hotels today said it has received approval from its board for the merger of the company with parent firm Jaiprakash Associates.
In a filing to the Bombay Stock Exchange, the company said accepting the recommendation of its committee of directors the board has approved the amalgamation of Jaypee Hotels with Jaipraksh Associates with effect from April 1, 2008.
However, the merger is subject to requisite approvals and sanction from the court, the company said.
Under the scheme of merger, shareholders of the Jaypee Hotels would be allotted one share of Rs 2 each of Jaiprakash Associates for every share of Rs 10, the company added.
On being contacted, a spokesperson of the Jaypee Hotels, however, declined to say anything regarding this.
Shares of the company settled at Rs 84.85, up 4.56 per cent on the BSE today.