Crompton Greaves Consumer Electricals Ltd. and Butterfly Gandhimathi Appliances Ltd. have announced a proposed scheme of amalgamation of Butterfly with Crompton. Upon merger, the public shareholders of Butterfly, as on the record date, will receive 22 equity shares of Crompton for every 5 equity shares held by them in Butterfly, as a consideration for the merger.
Post-merger the public shareholders of Butterfly will hold 3.0% stake in the combined entity.
Shantanu Khosla, MD, Crompton said, “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, said, “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.”