Metropolis Healthcare Limited board approves merger of companies

The Board of Directors of Metropolis Healthcare Limited at their meeting held today have approved and took note of the recommendation of the Audit Committee and subject to requisite consents / approvals, approved the Scheme of merger by absorption of Bokil Golwilkar Metropolis Healthcare Private Limited and Desai Metropolis Health Services Private Limited and Dr. Patel Metropolis Healthcare Private Limited and Lab One Metropolis Healthcare Services Private Limited and Micron Metropolis Healthcare Private Limited and R. V. Metropolis Diagnostic & Health Care Center Private Limited and Raj Metropolis Healthcare Private Limited and Sudharma Metropolis Health Services Private Limited ("Transferor Companies") with the Company and their respective Shareholders ("Scheme") under the provisions of sections 230 to 232 of the Companies Act, 2013.

The Transferor Companies are wholly owned subsidiary of the Company and as such related party to each other.

The proposed amalgamation will be beneficial to the Transferor Companies, the Transferee Company, their respective shareholders and creditors, employees and other stakeholders and will have following benefits:

- Integration of business operations.

- Greater efficiency in cash management of the amalgamated entity, and unfettered access to cash flow generated by the combined business which can be deployed more efficiently to fund growth opportunities.

- Garner the benefits arising out of economies of large scale and lower operating costs.

- Pooling and rationalization of talents in terms of manpower, management, administration etc. to result in savings of costs.

- Avoidance of duplication of administrative functions, reduction in multiplicity of legal and regulatory compliances and cost.

- Integrated operational and marketing strategies, inter-transfer of resources / costs will result in optimum utilization of assets.

- Bring uniformity in corporate policy.

- Benefit of operational synergies to the combined entity and greater leverage in operations, planning and process optimization.

The proposed corporate restructuring mechanism by way of a scheme of merger by absorption under the provisions of the Act will be beneficial, advantageous and not prejudicial to the interests of the shareholders, creditors and other stakeholders of the Transferor Companies and the Transferee Company.

Shares of Metropolis Healthcare Limited was last trading in BSE at Rs. 3002.35 as compared to the previous close of Rs. 2994.05. The total number of shares traded during the day was 27533 in over 2012 trades.

The stock hit an intraday high of Rs. 3048.45 and intraday low of 2971.6. The net turnover during the day was Rs. 82754870.

Source : Equity Bulls

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