Shareholders of the Chennai-based Butterfly Gandhimathi Appliances Ltd (Butterfly) were not in favour of the merger scheme with Crompton Greaves Consumer Electricals.
“While the approval to the Scheme from majority in number representing three-fourth in value of the equity shareholders (including public shareholders) of Butterfly was obtained at the meeting, approval of majority of the public shareholders of the Butterfly was not received in favour of the Scheme at the said meeting of the shareholders,” Butterfly said in a communication to the National Stock Exchange.
However, the company said that this development will not have any significant change in our growth strategy. The companies will continue to operate as separate entities and work towards fulfilling their mutual strengths. At the same time, they grow the kitchen appliances category in order to achieve the growth potential of each of the companies, thereby creating value for all the stakeholders.
Accordingly, the public shareholders of Butterfly, as of the record date, will receive 22 equity shares of Crompton for every five shares held by them in Butterfly as a consideration for the merger. The merger was to accelerate the business and convergence of public shareholders of Butterfly at a parent level, it said at that time.