SAIL approves the merger of MEL with the company

Steel Authority Of India Ltd. | Steel & Iron Products | Metals & Mining | BSE: 500113 | NSE: SAIL

19 Jul 2011 Evaluate

Steel Authority of India’s (SAIL) board of directors have approved the merger of Maharashtra Elektrosmelt (MEL) with the company, thereby leading to the dissolution of the former i.e. MEL. In terms of the scheme, the shareholders of MEL are entitled to receive fully paid-up equity shares of SAIL in the share exchange ratio of 1:1.7 i.e. for every 1.7 fully paid-up equity shares of Rs 10 each held in MEL, every shareholder of MEL shall be entitled to receive 1 fully paid-up equity share of Rs 10 of SAIL, as consideration for this Scheme.

The Ministry of Corporate Affairs (MCA), New Delhi vide its letter dated June 14, 2011 , forwarded the order of the Central Government sanctioning the Scheme of Amalgamation of MEL with SAIL under Section 391-394 of the Companies Act, 1956.

Hence, in line with the directions of the MCA to file a copy of the order with the Registrar of Companies within 30 days of the receipt thereof, the order was filed with the Registrar of Companies at Mumbai and Delhi by MEL on July 12, 2011 and by SAIL on July 13, 2011 respectively. Thus, with the filing of the order, the amalgamation has been effective and MEL stands to be dissolved.

The company’s board of directors meeting is scheduled to be held on July 29, 2011, where a decision on the record date would be taken.