GB Global Limited has informed the Exchange about Amalgamation/Merger
Awaiting price reaction for this filing.
The Board of GB Global Limited has re-approved a Scheme of Merger by Absorption with its holding company, Dev Land & Housing Private Limited (DLH), under Sections 230-232 of the Companies Act, 2013. GB Global (listed entity) is the Transferor Company, and DLH (engaged in real estate, infrastructure and redevelopment) is the Transferee Company. As part of the deal, eligible shareholders of GB Global will get an exit opportunity via an open offer of Rs. 120 per equity share, plus 1 Redeemable Preference Share of Rs. 10 face value for every 1 equity share held. The Board also noted terms of redeemable preference shares to be issued to GB Global by DLH. After the merger, the listed entity GB Global will stand dissolved. The transaction is a related party deal done at arm's length.
This is effectively a delisting-style exit for GB Global shareholders, as the listed entity will be dissolved and absorbed into its unlisted holding company. Shareholders get a cash exit at Rs. 120/share or can hold preference shares in DLH; the stock may see activity around the open offer price. Long-term, investors lose a listed avenue as the textile/garment business merges into a real estate-focused group entity.