The proposed date for the merger is April 1, 2003.
The equity shareholders, secured and unsecured creditors of AIGL unanimously approved the scheme as amended in meetings held on March 29, 2003 in the capital under directions of the Delhi Hidh Court.
With this, the merger process moves ahead subject to requisite regulatory approvals and sanction of the scheme under the High Courts, the release stated.
Under the terms of the merger, AIGL will issue three equity shares of Rs 1 each, fully paid up and four 10 per cent cumulative redeemable preference shares of Rs 10 each, fully paid up in itself to the shareholders of FIL for every eight equity shares of Rs 10 each, fully paid up held by them in FIL.
AIGL currently holds 79.6 per cent equity in FIL, which it had acquired in 2001 pursuant to initiatives of Asahi Glass Company (AGC) of Japan to restructure its Indian operations. Under the proposed scheme, this holding of equity by Asahi India in FGI would stand cancelled.
Thus, the paid up equity capital of AIGL would increase from the current Rs 7.4 crore to Rs 8 crore.
The merger would also entail issue of preference shares of Rs 8 crore by AIGL. The preference shares will have a tenure of 12 months and would carry a dividend of 10 per cent.