Jyothy Laboratories’ (JLL) board has approved the amalgamation of Henkel India (HIL) with itself. As per the scheme of arrangement, the swap exchange ratio is fixed at 1:8 i.e. HIL’s shareholders will get 1 share of JLL for every 8 of its share in return. The shares held by JLL in HIL will be extinguished post merger. After the merger, equity of Jyothy Laboratories will increase by 2.87%.
Recently, Jyothy Laboratories recommended the issue of bonus shares in the ratio of 1:1 , subject to the approval of shareholders. Last year, Henkel India became a subsidiary of Jyothy Laboratories consequent to the sale of 50.87 percent stake in Henkel India held by Henkel AG & Co. of Germany.
