Jaiprakash Power Ventures Ltd (JPVL) said on Tuesday it has got the approval of shareholders and creditors for the proposed merger of Jaypee Karcham Hydro Corporation Ltd (JKHCL) and Bina Power Supply Company Ltd (BPSCL) with itself.

Following the amalgamation, JPVL as a standalone company will have a power portfolio of 4,250 MW, of which 2,200 MW is likely to be operational within the Eleventh Five-Year Plan period (by March 2012).

“JPVL has informed BSE that the shareholders and the creditors of the company and creditors of JKHCL and BPSCL have in their respective meetings convened on April 30, 2011, in terms of the order dated March 14, 2011 passed by the High Court of Himachal Pradesh, unanimously approved the proposed scheme of amalgamation of JKHCL and BPSCL with the company, without any modification,” the company informed the bourses.

Amalgamation

Under the amalgamation plan cleared by the JPVL board on February 14, the shareholders of JKHCL will be allotted two shares of Rs 10 each by JPVL, for 10 equity shares of Rs 10 each, held in JKHCL.

For BPSCL shareholders, two shares of Rs 10 each will be allotted by JPVL for 13 shares of Rs 10 each held in BPSCL. The new capital of JPVL post-amalgamation would consist of 265.18 crore shares of Rs 10 each.

The valuations were carried out adopting the price earnings capitalisation value (PECV), net asset value (NAV) and market value approach, Jaiprakash Power said in February.

JPVL holds 56.9 per cent stake in JKHCL, which is setting up the 1,000-MW Karcham Wangtoo Hydro Electric project in Himachal Pradesh.

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