India’s company court approved a bid by a group of firms controlled by yoga guru Ramdev to take over cooking oil and soya-products maker Ruchi Soya Industries Ltd. for Rs 4,350 crore.
Patanjali Consortium Adhigrahan Pvt. — a venture by Patanjali Ayurved Ltd. and three other companies — will merge with Ruchi Soya, according to a stock exchange filing late Saturday. Shareholders of Patanjali Consortium will get one share of Ruchi Soya for each that they hold in the former.
Creditors of Ruchi Soya will receive a maximum of Rs 4,240 crore in repayments, a 65 per cent haircut to the verified claims of about Rs 12,100 crore, according to the filing. The remaining Rs 110 crore will be used to finance the expansion of Ruchi Soya after the merger.
Shares of Ruchi Soya gained 1.1 per cent to Rs 4.60 in Mumbai on Friday. They have slumped 49 per cent this year, headed for a ninth straight annual decline.
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