Merger of BASF & Ciba approved in India
At a meeting convened by the Hon’ble High Court of Judicature at Mumbai on Dec 16 and Dec 17, 2009, shareholders of BASF India Ltd (BIL) and Ciba India Limited (CIL) approved the Scheme of Amalgamation of the three Ciba Group Companies in India with BASF India Ltd respectively.
BASF announced its plans to merge the three Indian Ciba Companies viz. Ciba India Ltd., Ciba Research (India) Pvt. Ltd. and Diamond Dye-Chem Ltd. with BASF India Ltd (BIL) at its Board meeting held on September 12, 2009.
The merger proposal including the share-swap ratio was approved by the Board of Directors of the respective companies on the same date. Accordingly, Equity Shareholders of Ciba India Ltd. and Ciba Research (India) Private Limited will receive shares in BASF India Ltd.
The share exchange ratio is determined at 90 equity shares of BIL of Rs. 10/- each fully paid for every 100 equity shares of Ciba India Limited of Rs. 10/- each fully paid and 18 equity shares of BIL of Rs. 10/- each fully paid for every 100 equity shares of Ciba Research (India Private Limited of Rs. 10/- each fully paid.
Shareholders of both the companies approved the Scheme of Amalgamation in requisite majority. It is now subject to approval from the Hon’ble High Court of Judicature at Mumbai.
The merger is expected to take effect as of February 1, 2010, the appointed date for the merger.