The Board of Directors of Pratibha Industries Ltd at its meeting held on February 3rd 2012, considered and approved the Composite Scheme of Arrangement between Pratibha Pipes and Structural Limited Pratibha Industries Limited ('PIL' or 'the Company'), and New Company ('New Company') and their respective shareholders.

Under the proposed Scheme, PPSL would be merged into the Company and the manufacturing undertaking would be hived off from the Company into New Company (a 100% subsidiary of the Company to be incorporated under the Companies Act, 1956), by way of slump sale with effect from April 01, 2012, which is the Appointed Date under the Scheme.

Based on the valuation report of SSPA & Co, independent valuers and the fairness opinion of Keynote Corporate Services Limited, independent merchant bankers, the Board has approved the share exchange ratio of "6 fully paid up equity shares of INR 2 each of the Company shall be issued and allotted for every 1 equity shares of INR. 10 each held in the PPSL".

The Scheme is subject to consent, approval of requisite majority of shareholders of the Company, PPSL and New Company; sanction of the High Court of Judicature at Bombay and all other regulatory approvals as may be necessary for the implementation of the Scheme.

(Sourced from Equity Bulls)