A proposed merger (amalgamation) between two companies, Butterfly Gandhimathi Appliances Limited and Crompton Greaves Consumer Electricals Limited did not work out.
Context:
The companies wanted to merge with the approval of their shareholders and creditors.
Outcome:
The majority of Butterfly’s equity shareholders, including the public shareholders, approved the merger. However, the majority of the public shareholders of Butterfly did not approve the merger.
As a result, according to SEBI regulations, the merger will not happen because it didn’t receive the necessary approval from Butterfly’s public shareholders.
Impact:
- Butterfly and Crompton will continue to operate as separate companies.
- They will focus on their respective strengths and continue working to grow their kitchen appliances businesses.
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