HLL shareholders okay Ponds merger

Mumbai, May 16: Shareholders of Hindustan Lever Ltd HLL approved by an overwhelming majority the merger of Pond's India Ltd PIL with H...

Mumbai, May 16: Shareholders of Hindustan Lever Ltd HLL approved by an overwhelming majority the merger of Pond8217;s India Ltd PIL with HLL at a court-convened meeting, according to an HLL press release. The merger, after other statutory approvals, will be effective from January 1, 1998.

The release said that a total of 1,415 shareholders either present in person or through authorised representatives or proxies cast valid votes at the polls. Scrutineers have reported that 1,392 shareholders accounting for 98.4 per cent of the total shareholders, who participated in the poll, have voted in favour of the merger resolution, while 23 shareholders accounting for 1.6 per cent voted against it.

In terms of value, 10,26,20,670 votes accounting for 99.99 per cent of the total valid votes cast at the poll were in favour of the merger resolution, while 3,377 votes accounting for 0.01 per cent were against the merger resolution, said the release.

HLL8217;s secured and unsecured creditors, including fixeddeposit-holders and debenture-holders at separate meetings held today, also approved the merger unanimously, with 100 per cent of secured and unsecured creditors, including fixed deposit-holders and debenture-holders, voting for the merger resolution.

The merger resolution was approved at a poll held at the court-convened meeting of the shareholders as required by the rules. The meeting was held on May 15, 1998, in Mumbai. The result of the poll was declared late in the evening on Saturday, May 16.

Chartered accountant and former partner of AF Ferguson amp; Co KM Powvala and Sanjay Buch of Crawford Bayley amp; Co, who were appointed scrutineers of the poll by KB Dadiseth, chairman appointed for the court-convened meeting by the Bombay High Court, submitted their report to him. Earlier, PIL shareholders, too, had approved the merger at their court-convened meeting in Chennai on May 11, 1998. The amalgamation there was approved by 97.2 per cent of shareholders present and voting, representing 99.3 per cent of thevalue of shares on which the poll was exercised.

Both the companies are subsidiaries of Unilever PLC, which holds 51 per cent equity in each. The proposed amalgamation will enable the two companies which have significant overlaps besides a common distribution system to realise greater synergies.