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Kolkata, Nov. 9

THE B.M. Khaitan Group has finalised the swap ratio for the merger of Williamson Tea Assam Ltd (WTA) into McLeod Russel India Ltd (MRIL).

After two consecutive board meetings on Wednesday, the group announced that three new shares of MRIL of Rs 5 face value would be issued and given to the WTA shareholders for every one WTA share of Rs 10 face value.

A senior official of WTA said the swap ratio has been arrived at jointly by ICICI Securities and PricewaterhouseCoopers. On October 31, the boards of the two companies formally announced the merger.

It may be noted that while the face value of WTA shares were of Rs 10 that of MRIL was Rs 5. Subsequent to the merger, WTA will cease to exist. After acquiring 70 per cent of WTA from the UK-based Magors, the Khaitan Group made the mandatory open offer for the minority shareholders of WTA.

(This article was published in the Business Line print edition dated November 10, 2005)
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