India's largest sugar refiner Shree Renuka Sugars today said its board has given in-principal nod for merger of its UAE-based subsidiary Renuka Commodities DMCC with itself.
The main business activity of Renuka DMCC is trading in raw sugar, white sugar and ethanol.
In a BSE filing, the company said, "the Board of Directors at its meeting held today, inter-alia considered and granted its in-principal approval for the amalgamation of the company's wholly-owned overseas subsidiary Renuka Commodities DMCC into itself."
The amalgamation has been approved with a view to optimise the synergies of both the companies and strengthen the balance sheet of Shree Renuka Sugars, it said.
"The amalgation will not fall within related party transaction. Since Renuka DMCC is a wholly-owned subsidiary of the company, on amalgamation, neither consideration will be paid nor shares will be issued by the company," the company said in the filing.
The amalgamation will not result in change in the shareholding pattern of the company, it added.
The merger would be subject to the approval of the shareholders, creditors, stock exchanges, Karnataka High Court pursuant to the provisions of sections 391 to 394 of the Companies Act and other statutory and regulatory authorities, as applicable.
The company operates 11 mills globally, with a total crushing capacity of 20.7 million tonnes per annum (MTPA) or 94,520 tonnes crushed per day (TCD).
It has seven sugar mills in India with a total crushing capacity of 7.1 MTPA, or 35,000 TCD, and two port-based sugar refineries with expected capacity of 1.7 MTPA.
