JP Associates said it will merge Jaypee Hotels, Jaiprakash Enterprises, JP Cement, and Gujarat Anjan with self, reports CNBC-TV 18.
Post the merger, for each Jaypee Hotels' share held, its shareholders would get one JP Associates share.
Meanwhile, JP Cement holders would get one share of JP Associates for every 10 held in the company, while Gujarat Anjan shareholders would get one share of JP Associates for every 11 Gujarat Anjan shares.
Also, JP Enterprises shareholders would get three shares of JP Associates for every one JP Enterprises share.
Here is a verbatim transcript of Varinder Bansal's comments on CNBC-TV18. Also watch the accompanying video.
Earlier, CNBC-TV18 has learnt that in a bid to bring about more stability in its revenues, JP Associates may be looking at merging the group's hotel business with itself.
As per the details, every share of Jaypee Hotels will be exchanged for one share of JP Associates. The hotel business is generally considered a cash flow generating asset, and will help JP Associates meet its target.
However, JP Associates and Jaypee Hotels' management could not be reached for comments.
JP Associates holds 73.7% stake in Jaypee Hotels. JP Greens was amalgamated with JP Associates in 2006. Jaypee Hotels is a cash flow generating asset and has six properties in and around NCR. JP Associates is trying to bring more stability in its revenues by way of the merger.
