Dhampur Sugar Mills today said its board has approved the merger of JK Sugar with the company and shareholders of the latter will get 275 shares for every 1,000 shares they hold.
In a filing to the BSE, the company said, "The board of directors in its meeting held on June 10, 2012, gave approval to the amalgamation of JK Sugar Ltd with the company."
The Board approved the share exchange ratio of 275:1,000, meaning thereby that every equity shareholder of JK Sugar holding 1,000 fully paid-up equity shares of Rs 10 each will be entitled to receive 275 fully paid-up equity shares of Dhampur Sugar Mills, it said. The proposed merger is subject to regulatory and other approvals, the company added.
JK Sugar, a part JK Industries, in a separate filing to the BSE said its board has approved the proposed merger in its meeting on June 9. JK Sugars has sugarcane crushing capacity of over 4,000 tonnes per day. While Dhampur Sugar Mills has capacity to crush 39,500 tonnes of cane per day.
Both the companies are based in Uttar Pradesh, which is second in the country for sugar production after Maharashtra.
Shares of Dhampur Sugar Mills were trading higher by 1.35 per cent at Rs 45.10 on the BSE. JK Sugar was quoted at Rs 18 apiece, down 2.6 per cent over previous close, on the BSE at 1350 hrs.