The board of directors of FMCG major, Hindustan Lever Limited (HLL), on Friday approved the proposal to merge Modern Food Industries Ltd (MFIL) and its subsidiary Modern Food and Nutrition Industries Ltd (MFNIL) with the company with effect from October 1, 2006.
HLL in a statement to the stock exchanges said, "The directors of the company have approved the proposal for merger of MFIL and its subsidiary MFNIL with the company, with effect from October 1, 2006."
"In terms of the Scheme of Amalgamation, the entire shareholding of the two companies would stand cancelled and accordingly no valuation exercise or recommendation of share exchange ratio was made," the HLL release said.
The HLL board also decided to demerge the non-functional factory land at Shamnagar and Jamnagar and the vacant leasehold land at Daverashola into three separate resulting companies with effect from October 1, 2006 and would be 100 per cent subsidiaries of the company.
Going forward, the company would go for the approval of the shareholders and the high courts of Bombay and Delhi for the scheme of amalgamation of MFIL and MFNIL with the company, the release said.
MFIL at its board meeting held on Friday approved the proposal for its amalgamation with Hindustan Lever Limited, while the board meeting of MFNIL in this regard is scheduled to be held on Monday, September 11, 2006.