M&M arm fixes ratio for Amforge unit takeover

The board of directors of Mahindra Automotive Steels Pvt Ltd (MASPL), a wholly-owned subsidiary of Mahindra & Mahindra (M&M), today approved the scheme of arrangement for the merger of Chakan unit of Amforge Industries (AIL) with MASPL.

According to a release issued by M&M to the BSE today, based on the joint valuation report of N M Raiji & Co and Deloitte Haskins & Sells, the board also approved the exchange ratio for the proposed merger.

"One 4% non-cumulative, redeemable, non-convertible preference share of MASPL with a face value of Rs 31 each will be paid for one equity share of AIL of Rs 10 each in addition to one equity share of MASPL of Rs 10 each for every one share of AIL," the release added.