Glenmark Pharmaceuticals' board today approved a merger of two subsidiaries -- Glenmark Generics and Glenmark Access -- with itself.
"Board of Directors of Glenmark Pharmaceuticals Ltd (GPL) in their meeting held on January 31, 2014, have approved a proposal to merge its subsidiaries --Glenmark Generics Ltd (GGL) and Glenmark Access Ltd (GAL) with GPL," the company said in a filing to the BSE.
The merger will be effected through a court approved scheme of amalgamation, it added.
As on date 99.33 per cent of the share capital of GGL is being held by GPL (including 1.19 per cent being held by GAL, a wholly owned subsidiary of GPL).
"As Per the Scheme, the remaining shareholders holding 0.67 per cent (10,16,741 equity shares) of the share capital of GGL will be issued shares of GPL at a swap ratio which has been determined as four shares of GPL of Re 1 each for every five shares of Rs 10 each held by the shareholders of GGL," the company said.
Shares of Glenmark provisionally closed at Rs 558.95 apiece on the BSE, up 3.35 per cent from their previous close.
