Radico Khaitan To Be Amalgamated With Abhishek Cements

Liquor major Radico Khaitan, which owns brands like 8 PM whisky and Contessa Rum, is being amalgamated with Abhishek Cements through a reverse merger sanctioned by the Board for Industrial and Financial Restructuring (BIFR).

Radico Khaitan (RKL) informed the Bombay Stock Exchange (BSE) today that the BIFR sanctioned the scheme of rehabilitation of Abhishek Cements.

The scheme also envisaged a one-time settlement scheme for the payment of liabilities of the banks and financial institutions by Abhishek Cements.

After the merger Abhishek Cements will be renamed Radico Khaitan Ltd and the registered office of the company would be at Rampur, UP, with the same nominal capital as that of RKL.

 

The scheme will be effective from the transfer date which is January 1, 1997. With effect from the transfer date, all rights, powers, interests, authorities, privileges, liberties and all properties and assets, whether moveable or immovable as well as all debts, liabilities, duties and obligations including all creditors of RKL would be transferred to and vested in the merged entity RKL/ACL.

The equity shares of the merged company would be listed at the Kanpur, Delhi, and Mumbai stock exchanges as well as in the National Stock Exchange (NSE).

Further, the merger scheme involves restructuring of the capital of ACL.

The paid up equity share capital of ACL would be reduced from Rs 11.688 million to Rs 1.1688 million (one tenth) by canceling the paid up capital to the extent of Rs 9 per equity share (face value Rs 10).

Immediately on reduction, ten shares of Rs 1 each (as reduced)would be consolidated into one share of Rs 10 each fully paid.

Post amalgamation the existing shareholders of RKL would hold one share of the amalgamated company for every one share held by them.

Settlement of dues of banks and institutions will be by conversion of entire principal, FITL and WCTL dues into non-convertible debentures carrying