The USD 41 billion Aditya Birla Group to merge Aditya Birla Nuvo with Grasim Industries. This will create a nearly Rs 60,000-crore diversified entity that will be among the largest in India.
As part of the plan, financial services business of the merged entity will be hived off and merged with Aditya Birla Financial Services Ltd (ABFSL), a wholly-owned arm of ABNL and will be listed subsequently.
Aditya Birla Group Chairman Kumar Mangalam Birla said, “The proposed restructuring will create one of India’s largest, well-diversified companies with a healthy mix of business with steady cash flows and long term growth opportunities”.
“The demerger and listing of financial services business will unlock value for shareholders,” He added.
Aditya Birla Group said in a statement, Grasim will become the number one cement company with the largest selling brand, among the top 10 diversified private NBFCs in India, top four private sector life insurers and asset management companies, and number three telecom operator in the country.
The group said for merger of ABNL with Grasim, each shareholder of ABNL will get three new equity shares of Grasim for every 10 equity shares held in ABNL and for demerger of financial services business into ABFSL, each shareholder of Grasim (post merger) will receive seven equity shares in ABFSL for every one equity share held in Grasim.
The transaction is speculated to be completed by the first quarter of 2017-18.
(inputs from PTI)