Board of directors of Bajaj Hindusthan Sugar and Industries Ltd has approved its merger with Phenil Sugars Pvt Ltd, which holds more than 99 per cent shares in two companies having one sugar plant each of the capacity of 6,000 tonnes of cane daily (TCD).
According to a communication to the BSE, the appointed dated of merger is proposed to be 1 April, 2008. The merger is based on a share exchange ratio of one equity share of Bajaj Hindusthan Sugar and Industries Ltd of Re 1 each fully paid up for every two equity share of Phenil Sugars Pvt Ltd of Rs 10 each fully paid up.
The board also approved conversion of certain loan along with the loans taken over by it from its future subsidiaries due to Bajaj Hindusthan Ltd into zero coupon secured optionally convertible securities.
