Butterfly Gandhimathi Appliances Ltd.'s public shareholder did not approve its merger with Crompton Greaves Consumer Electricals Ltd.
In the shareholders meeting on Oct. 28, three-fourth of equity shareholders—including public shareholders—approved the scheme of amalgamation, but the majority of public shareholders voted against the merger, the company said in an exchange filing late on Monday.
The scheme will not be acted upon due to the non-receipt of the requisite approval from the public shareholders of Butterfly, the filing said.
This development will not have any significant change in our growth strategy, Butterfly said in the filing.
In March, the boards of Crompton Greaves Consumer Electricals Ltd. and Butterfly Gandhimathi Appliances Ltd. proposed a merger of the two companies.
In the proposed scheme of amalgamation, public shareholders of Butterfly as of the record date will receive 22 equity shares of Crompton for every 5 equity shares held by them in Butterfly. Public shareholders of Butterfly would have held about a 3% stake in the combined entity.
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