NPIL meet on Mar 8 to take up Canere merger

Pharma major Nicholas Piramal India has convened an extraordinary general meeting (EGM) on March 8, 2004 to seek shareholders nod for the merger of Canere Actives and Fine Chemicals with itself. The Nicholas Piramal board had approved the merger proposal on January 28, 2004.

Under the scheme, Nicholas Piramal will issue 15 lakh cumulative redeemable preference shares with a face value of Rs 100 each. The shares will carry a preference dividend of 5 per cent.

Canere shareholders will get three preference shares of Nicholas Piramal for every 20 equity shares of Rs 10 each.

Further, Nicholas Piramal will also issue 2.33 crore preference shares with a face value of Rs 10 each to shareholders of Morarjee Goculdas Spinning & Weaving Company. Morarjee shareholders will get 6 preference shares for every 5 equity shares held in Morarjee.

Nicholas Piramal had earlier said that Canere's facility is ideally suited for on-patent, custom manufacturing contracts.

It is negotiating with three of the top 20 global innovator companies for such contracts. Further, the company is expected to save time on regulatory clearances.

Canere has a new active pharmaceuticals ingredients facility with a capacity to produce 350 tonnes of high-end API per annum. The unit is located in the vicinity of Nicholas's existing unit in Hyderabad.