Mumbai: The board of directors of Cadila Healthcare, German Remedies (GRL), Recon Healthcare Zydus Pathline and Zoom Properties have approved the scheme of amalgamation of the respective companies into Cadila Healthcare. The board has fixed the share exchange ratio of 7:4 for the merger of Cadila and GRL.

Two Mumbai-based chartered accountant firms, NM Raiji & Co and SR Batliboi & Co, were appointed for carrying out the joint valuation for the proposed merger and the recommended swap ratio.

Based on the recommendation of these two firms, the board of directors of Cadila and GRL have unanimously approved the share exchange ratio of 7:4, which means seven shares of Cadila will be issued in exchange of four shares of GRL.

Fresh shares of Cadila will be issued to public shareholders of GRL only and the shares held by Cadila and Recon, aggregation to 77.37 per cent to the paid-up share capital of GRL, will be cancelled and extinguished.

Other three companies, namely Recon, Zydus Pathline and Zoom, are wholly-owned subsidiaries of Cadila and thus, there will not be issuance of any shares upon merger thereof with Cadila.