Suprajit Engineering Ltd and Phoenix Lamps Ltd, following separate meetings of their respective boards of directors, have announced the merger of Phoenix with Suprajit.
Phoenix is the subsidiary of Suprajit wherein Suprajit currently owns 61.93 per cent of Phoenix’ equity shareholding. The merger ratio has been set at four shares of (Re 1 each) Suprajit for every five shares of (Rs 10 each) Phoenix in line with SEBI regulations.
The merger price of Phoenix at Rs 110, based on the closing price of Suprajit on April 13 on NSE, represents a premium of 23.50 per cent on the Rs 89 per equity share of Rs 10 of Phoenix Lamps Ltd paid by Suprajit to acquire Phoenix last year, 10 per cent premium to the open offer price of Rs 100 and 10 per cent premium on the six-month average price of Phoenix.
Post-merger, Phoenix Lamps Ltd will operate as a separate division of Suprajit Engineering Ltd and will continue to market itself under the ‘Phoenix’ brand.