Crompton Greaves Consumer Electricals announces merger with Butterfly

Crompton Greaves Consumer Electricals Ltd (CGCEL) and Butterfly Gandhimathi Appliances have announced a merger to accelerate and smoothen the realisation of synergies of the combined business.

This will also simplify corporate and governance structure and convergence of public shareholders of Butterfly at the parent level and align interests for shareholders of both companies, said a joint statement.

This would be based on a share swap, it added.

"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," it said.

Post-merger, the public shareholders of Butterfly will hold ~3 per cent stake in the the combined entity, it added.

"The scheme is subject to the necessary statutory and regulatory approvals including approval of the stock exchanges, SEBI, the respective shareholders and creditors of each of the companies and NCLT (Mumbai and Che