RPG Life Sciences Board approves Scheme of Arrangement

The Board of Directors of RPG Life Sciences Ltd at its meeting held on June 12, 2007, has considered and approved the Scheme of Arrangement between the Company and RPG Pharmaceuticals Ltd ('Operating Co') and Instant Holdings Ltd ('Investment Co') and Instant Trading and Investment Company Ltd ('Instant').

The Scheme envisages sale of Pharmaceuticals business of the Company to Operating Co for a consideration of Rs 46.00 Crs. This consideration shall be discharged by Operating Co in the form of equity shares of Rs 11,49,50,800 representing 1,43,68,850 equity shares of Rs 8 each fully paid-up at an aggregate premium of Rs 34,50,49,200. The appointed date for the same is April 02, 2007. These shares of Operating Co. shall be issued to the members of the Company in the ratio of 1:1.

The scheme also envisages Sale of Investments of the Company to Investment Co for a consideration of Rs 53.00 Crs. This consideration shall he discharged by Investment Co in the form of equity shares of Rs 9,95,00,000 representing 99,50,000 equity shares of Rs 10 each fully paid-up at an aggregate premium of Rs 43,05,00,000. The appointed date for the same is April 01, 2007. These shares of Investment Co shall be issued to the Company.

The company also contemplates Merger of Instant with Investment Co. The Scheme is subject to requisite consent, approval of the requisite majority of the shareholders, lenders and creditors of the Companies, the Hon'ble High Court of Judicature at Bombay, the permission or approval of any other statutory or regulatory authorities, which by law may be necessary for the implementation of the Scheme.

The stock was trading at Rs.103.85, up by Rs.0.55 or 0.53%. The stock hit an intraday high of Rs.108 and low of Rs.101. The total traded quantity was 22701 compared to 2 week average of 53610.

Source : Equity Bulls

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