At the meeting held today, the Board of Directors of the Company unanimously approved the proposal of amalgamating Hinduja Foundries Limited (HFL), a Hinduja Group company, (who are in the business of grey iron castings and supply of automotive components) with Ashok Leyland Limited (AL), subject to various regulatory approval and approval of shareholders of both the companies.
The Board of Directors also approved (subject to regulatory approvals) the exchange ratio of in the following manner:
- 100 (one hundred) equity shares of Rs.10/- each fully paid of Hinduja Foundries Limited will get 40 (forty) equity shares of Re.1/- each fully paid of Ashok Leyland Limited.
- 1,000 (one thousand) 2008 series GDRs of Hinduja Foundries Limited will get 133 (one hundred thirty three) equity shares of Re.1/- each fully paid of Ashok Leyland Limited.
- 1 (one) 2016 series GDRs of Hinduja Foundries Limited will get 4,800 (four thousand eight hundred) equity shares of Re.1/- each fully paid of Ashok Leyland Limited.
The Appointed Date for the proposed amalgamation is October 1, 2016.
Commenting on the above Mr. Vinod K. Dasari, Chief Executive Officer and Managing Director, Ashok Leyland, said: “We welcome Hinduja Foundries into the fold of Ashok Leyland Limited. The amalgamation will result in operational efficiencies and help realize significant cost synergies. We are confident that the roll out of the best practices of Ashok Leyland Limited will benefit Hinduja Foundries Limited. While it is a critical supplier to Ashok Leyland Limited will continue its focus to grow its relationships with other customers. In fact the new arrangement will help in providing a wider range of solutions to them. There is so much more Hinduja Foundries can do under the new arrangement”.