India’s largest natural healthcare company Dabur India Ltd today announced that the Bombay High Court has approved the merger of Fem Care Pharma with Dabur India Ltd. The High Court, Bombay, has approved the scheme of amalgamation, which was earlier approved by equity shareholders, secured and unsecured creditors of Dabur, the Ministry of Corporate Affairs and the High Court of Delhi.
“This approval represents a significant step forward for Dabur in the strategy to accelerate growth in our core FMCG business. Besides giving Dabur a strong foothold in the high-growth skincare market with an established brand name Fem, this merger also offers us a platform to enter newer product categories and markets. As with our previous acquisition and subsequent integration of Balsara’s Hygiene and Home products businesses, the Fem Care Pharma Ltd acquisition too would offer substantial synergies for expanding the reach of Fem’s brands in all our geographies,” says P D Narang, Group Director, Dabur India Ltd.
The scheme of amalgamation was approved under the provisions of Sections 391 to 394 of the Companies Act, 1956 with the appointed date for the merger being April 1, 2009.
Dabur India Ltd had acquired 72.15 percent of Fem for Rs 203.7 crore in an all-cash deal. After obtaining the regulatory approvals, Dabur acquired additional 20 percent stake for Rs 56 crore through an Open Offer. With the completion of this transaction, Fem Care Pharma became a subsidiary of Dabur India Ltd. The Bombay High Court nod marks the final step towards the completion of Fem Care Pharma’s amalgamation with Dabur India Ltd.