Crompton Greaves Consumer Electricals Ltd. and Butterfly Gandhimathi Appliances Ltd. have introduced a proposed scheme of amalgamation of Butterfly with Crompton. Upon merger, the general public shareholders of Butterfly, as on the document date, will obtain 22 fairness shares of Crompton for each 5 fairness shares held by them in Butterfly, as a consideration for the merger.
Post-merger the general public shareholders of Butterfly will maintain 3.0% stake within the mixed entity.
Shantanu Khosla, MD, Crompton mentioned, “The merger is an important strategic step in the company’s journey and will help unlock the full potential of the combined businesses. It will enable a faster execution of our Go-To Market strategy and enable greater focus on product innovation. We are confident that this will create significant value for all of our stakeholders.”
Rangarajan Sriram, MD, Butterfly, mentioned, “The proposed merger will enable Butterfly to better leverage the pan-India reach of Crompton, integrate more closely with Crompton’s consumer appliances business and tap cross-selling opportunities. It will also provide greater avenues for growth and development of our people.”
