ITC Limited gets sanction for merger of Wimco Ltd's business

NEW DELHI: Diversified group ITC today said its scheme for demerger of the non-engineering business of its subsidiary Wimco Ltd, for the merger with itself, has been given a go-ahead by the courts.

"...the Scheme of Arrangement between Wimco Ltd (Wimco) and the Company and their respective shareholders for demerger of the Non-Engineering Business comprising Safety Matches Business and Agri (Forestry) Business of Wimco into the Company (the Scheme), has been sanctioned by the Hon'ble High Court of Judicature at Bombay and the Hon'ble High Court at Calcutta," ITC Ltd said in a filing to the BSE.

The Scheme has become effective from June 27, it added. ITC along with Russell Credit Ltd, a wholly owned unit, holds 98.21 per cent of Wimco's share capital.

Apart from the agri and matches businesses, Wimco has interest in manufacturing packaging machinery.

The Kolkata-based company has businesses across FMCG, hotels, paperboards and packaging, tobacco products and information technology.

The ITC scrip closed at Rs 324.90, up 1.58 per cent, on the BSE.