Jubilant Organosys on Thursday said its board has approved to de-merge its agri products and performance polymer divisions to Jubilant Industries, a wholly-owned subsidiary of the company.
Shareholders of Jubilant Organosys will get one additional share of Jubilant Industries for every 20 shares held in the pharmaceutical company, it said in a statement.
Jubilant Organosys’ board has also approved amalgamation of Speciality Molecules Ltd (SML) and Pace Marketing Specialities Ltd (PMSL) with the company. The shares held by Jubilant Organosys in SML will be cancelled and no shares shall be issued by the company on this amalgamation.
In consideration of the amalgamation, 501,364 shares of Jubilant Organosys will be issued to the shareholders of PMSL.
The share exchange ratio is based on the valuation by Price Waterhouse Coopers (PwC) and fairness opinion by Kotak Mahindra Capital Company Ltd, the company said.
The demerged entity will be referred to as Jubilant Industries Ltd, where as the name of Jubilant Organosys Ltd. will be changed to Jubilant Life Sciences Ltd.
The scheme of arrangement will be filed with the Allahabad High Court for its approval, followed by listing of Jubilant Industries shares on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
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