Aditya Birla Nuvo shareholders have approved the proposal to merge with its group company Grasim Industries. Investors voted on the proposal at the National Company Law Tribunal convened meeting held on Monday.
The resolution was approved by about 99 per cent of minority shareholders. Among the institutional investors, 76 per cent voted in favour, while the remaining opposed the proposal. About 157 members, including institutional investors owning 4,992,846 shares accounting for 4.45 per cent of vote casted, were against the merger proposal, according to the statement issued by the company.
Overall, the proposal was passed with 96 per cent of shareholders, including the promoter, voting in favour of the resolution.
Kumar Mangalam Birla, Chairman, Aditya Birla Group, said: “It augurs well that the public shareholders of both Grasim and ABNL have approved the merger by much more than the requisite majority. The portfolio will now span the manufacturing and services businesses with leadership positions in the cement, financial services, telecom, textiles and chemicals sectors.”
The proposal will simplify group cross-holdings and deliver value from a diverse range of businesses to shareholders.