Date:25/09/2008 URL: http://www.thehindubusinessline.com/2008/09/25/stories/2008092551250300.htm

Back Plant Organics-SMS Pharma merger plan cleared

Our Bureau

Hyderabad, Sept. 24 The Board of Industrial & Financial Reconstruction of India (BIFR) has approved the modified rehabilitation scheme for the merger of Plant Organics Ltd with SMS Pharmaceuticals Ltd with effect from January 1, 2008.

According to the approved scheme, SMS Pharma would offset the unabsorbed business losses of Plant Organics beyond the period of eight years under the Income-Tax Act, 1961. It would also issue shares to the shareholders of Plant Organics in the exchange ratio of 1:50 on the reduced capital of Plant Organics apart from other forms of relief and concessions, it informed Bombay Stock Exchange.

Earlier, on August 26, 2008, the shareholders of SMS Pharmaceuticals Ltd had approved the scheme. Plant Organics, a Hyderabad-based unlisted company, had turned sick 10 years ago and is currently with BIFR. “The proposed amalgamation will benefit SMS as the facility of Plant Organics is in close proximity to our plant in Hyderabad,” an official of SMS Pharmaceuticals told Business Line.