Crompton Greaves Consumer Electricals and kitchen appliance manufacturer Butterfly announce merger

• Crompton Greaves Consumer Electricals Ltd (CGCEL) and Butterfly Gandhimathi Devices announced a merger.
• The shareholders of Butterfly will receive 22 shares of Crompton for every 5 shares they hold in Butterfly.
• In February 2022, CGCEL had announced the acquisition of an 81 percent stake in Butterfly for Rs 2,076 crore.

Crompton greaves Consumer Electricals Ltd (CGCEL) and Butterfly Gandhimathi Appliances have announced a merger to accelerate and facilitate the realization of synergies of the combined company. This will also simplify Butterfly’s corporate and governance structure and convergence of public shareholders at the parent level and align the interests of the shareholders of both companies, a joint statement said.

This would be based on a share swap, it added.

“Upon the merger, Butterfly public shareholders will receive 22 shares of Crompton on the record date for every 5 shares they hold in Butterfly in consideration for the merger,” the company said.

Following the merger, Butterfly’s public stockholders will hold about a 3 percent stake in the combined entity, it added.

“The arrangement is subject to necessary legal and regulatory approvals, including approval from the stock exchanges, SEBI, the respective shareholders and creditors of each of the companies and NCLT (Mumbai and Chennai banks),” it added.

Shantanu Khosla, CEO of Crompton, said: “It will enable faster execution of our go-to-market strategy and a greater focus on product innovation. We are confident this will create significant value for all our stakeholders .”

Butterfly managing director Rangarajan Sriram said: “The proposed merger will enable Butterfly to better leverage Crompton’s pan-Indian reach, integrate more closely with Crompton’s consumer equipment business and cross-sell capabilities. It will also provide more opportunities for the growth and development of our people.”

In February 2022, CGCEL had announced the acquisition of an 81 percent stake in Butterfly for Rs 2,076 crore.

Butterfly Gandhimathi Appliances from Tamil Nadu is active in kitchens and small household appliances.

ALSO SEE:

Ashneer Grover’s new startup CrickPe is a fantasy sports app that will also reward cricketers

Soon you’ll be losing your old blue tick on Twitter – here’s everything you need to know

Three of the four premium smartphones sold in 2022 were iPhones