FMCG major Hindustan Lever Ltd on Friday said it will merge Modern Food Industries Ltd (MFIL) and its subsidiary Modern Food and Nutrition Industries Ltd (MFNIL) with itself.
At the meeting held today the board approved the scheme of amalgamation with effect from October 1, 2006.
Under the scheme, the entire shareholding of the two companies would stand cancelled and no recommendation of share exchange ratio was made, HLL said.
The board also approved the demerger of the non-funtional factory land at Shamnagar and Jamnagar and the vacant leasehold land at Daverashola into three separate resulting companies, which would be 100 per cent subsidiaries of HLL.
The demerger would be effective from October 1, 2006, HLL informed the Bombay Stock Exchange today.
HLL said it was now looking at getting shareholders approval as well as Delhi and Bombay High Courts sanction for the scheme of amalgamation of MFIL and MFNIL with the company.
Modern Food makes bread at six of its profit making units in India, including Mumbai, Bangalore, Chennai, Kochi, Kolkata and Hyderabad.