INDIA: Balaji Distilleries okays United Spirits merger
Balaji Distilleries is set to merge into United Spirits in India.
In a filing to the Bombay Stock Exchange late last week, the company, headquartered in Tamil Nadu province in the south-east of India, said that its board has approved the move, subject to the necessary approvals. The exchange ratio for shareholders in Balaji will be two shares of INR10 each in United Spirits for every 55 shares - also of INR10 each - in the company.
Balaji will become part of United Spirits with effect from 1 April.
Last month, Balaji reported net sales for the three months to the end of September of INR1.78bn (US$35.4m), a rise from the INR1.28bn posted in the corresponding quarter a year earlier. Net profit for the three-month period stood at a healthy INR320.9m, up from INR124.5m.
Formed in 1983, Balaji, which specialises in producing IMFL (Indian Made Foreign Liquor), also began producing beer for United Spirits' parent company The UB Group in 1995.
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