Approval of Scheme of Arrangement for Amalgamation of Subsidiary Company
Awaiting price reaction for this filing.
The National Company Law Tribunal (NCLT), Division Bench II, Chennai has approved the Scheme of Amalgamation of Udaya FM Private Limited (Transferor) with KAL Radio Limited (Transferee), both wholly-owned subsidiaries of Sun TV Network Limited, on 21st March 2025. The appointed date for the scheme is 1st April 2023. Under the approved swap ratio, shareholders of Udaya FM will receive 41,965 fully paid-up equity shares of KAL Radio (face value Rs 10 each) for every 10,000 equity shares held in Udaya FM. Both companies operate in the FM radio broadcasting business, and the merger is aimed at creating operational synergies, reducing costs, pooling resources, and improving competitiveness. Upon the scheme becoming effective, Udaya FM will stand dissolved without winding up, and all its assets, liabilities, employees, and pending proceedings will be transferred to KAL Radio Limited. The certified copy of the NCLT order is awaited.
This is an internal restructuring within Sun TV Network's subsidiaries and is unlikely to materially affect Sun TV's consolidated financials or shareholder value directly, as both merging entities are already under its control. The merger is housekeeping and may slightly streamline FM radio operations, but no immediate positive or negative stock price catalyst is expected.