Kothari Sugars And Chemicals Limited has informed the Exchange that the Board of Directors has considered and approved the Scheme of Amalgamation of Kothari Sugars and Chemicals Limited ( KSCL / Transferor Company ) with and into Kothari Petrochemicals Limited ( KPL / Transferee Company ).
KOTARISUG · price
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The Board of Kothari Sugars and Chemicals Limited (KSCL) has approved a Scheme of Amalgamation to merge KSCL into Kothari Petrochemicals Limited (KPL), both part of the HC Kothari group. KSCL operates in sugar, industrial alcohol, power co-generation and bio-compost, while KPL manufactures Polyisobutylene used in lubricants and fuel additives. The share exchange ratio is 1 KPL share for every 5 KSCL shares held. The transaction qualifies as a related party transaction but is exempt under Section 188 per MCA circular. Valuation was done by KPMG Valuation Services and fairness opinion was provided by Saffron Capital Advisors. Upon completion, KSCL will be dissolved without winding-up. The scheme requires approval from NSE, SEBI, shareholders, creditors and NCLT.
KSCL shareholders will receive KPL shares at a 1:5 ratio. Since this is an intra-group amalgamation aimed at simplifying structure and achieving cost synergies, the market reaction for both companies may be neutral to positive, depending on perceived value of the combined entity.