IPCL-RIL gets shareholders nod
Shareholders as well as both secured and unsecured creditors approved the merger with RIL, IPCL.
By PTI |
MUMBAI: The shareholders and creditors of Indian Petrochemicals Corporation Ltd (IPCL) have approved the merger of the company with the country's largest petrochemical firm, Reliance Industries Ltd (RIL).
Shareholders as well as both secured and unsecured creditors at a court-convened meeting on April 14 approved the merger with RIL, IPCL informed Bombay Stock Exchange.
IPCL, yesterday, also filed a petition with the Gujarat High Court for getting approval for the scheme.
The Boards of Directors of RIL and IPCL had on March 10 approved the merger of both companies.
Reliance Industries and its associate companies hold 47.3 per cent of IPCL's equity share capital. RIL acquired equity shares of IPCL in June 2002 during the then government's disinvestment programme.
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RIL has said the merged entity would create greater value for shareholders than could be delivered as separate companies.However, a section of IPCL shareholders during the meeting on April 14 had opposed the merger.
Some had even told the presiding Justice S D Dave that the poll process was illegal as coercive methods were used to obtain signed proxy forms from IPCL employees who are its shareholders under the Employee Stock Option scheme (ESOP).
They were also against the merger of six sick units into IPCL in 2006, done with the view of decreasing the profitability of the company.
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