Date:09/09/2006 URL: http://www.thehindu.com/2006/09/09/stories/2006090903101600.htm

Business

Modern Foods to be merged with HLL

Staff Correspondent

Draft scheme awaits shareholder and High Courts' approval

Merger to take effect from October 1
Non-functional and vacant leasehold lands to be hived off

Board meeting of MFNIL on September 11

MUMBAI: Hindustan Lever Ltd. (HLL) has announced the merger of Modern Food Industries Ltd. (MFIL) and its subsidiary Modern Food and Nutrition Industries Ltd. (MFNIL) with itself effective October 1.

After a meeting of its board of directors here on Friday, HLL announced that, in terms of the scheme of amalgamation, the entire shareholding of the two companies (MFIL and MFNIL) would stand cancelled and accordingly no valuation exercise or recommendation of a share exchange ratio was made.

The board also approved the proposal of demerger of the non-functional factory land at Shamnagar and Jamnagar and the vacant leasehold land at Daverashola into three separate resulting companies which would be 100 per cent subsidiary companies of HLL with effect from October 1.

The draft schemes, setting out the terms and conditions with regard to the plans, were approved by the board and the company would now initiate steps to obtain the approval of shareholders and the High Courts of Bombay and Delhi for the scheme of amalgamation of MFIL and MFNIL with the company.

MFIL at its board meeting held on Friday also approved the proposal for its amalgamation with HLL, while the board meeting of MFNIL in this regard was scheduled for September 11.

Modern Food makes bread at six of its profit making units in India, including Mumbai, Bangalore, Chennai, Kochi, Kolkata and Hyderabad.