Mumbai, Dec. 5: The merger of Alstom Power Boilers with Alstom Power India (APIL), seems to have reached a stale-mate after the Mumbai High Court issued a directive asking for a status-quo position to be maintained.
State Bank of India (SBI) today informed the exchanges that the Mumbai High Court had on October 31 passed an order approving the scheme of amalgamation between Alstom Power Boilers with APIL despite objections raised by the bank.
However, SBI filed an appeal against the order with the division bench of Justice Radhakrishnan and Justice Karnik on November 20, whereby both parties were directed to maintain a ‘status-quo’.
“As the parties have been directed to maintain a status-quo, no further steps may be taken by the company,” SBI added.
In February this year the board of APIL had recommended the approval of the scheme of amalgamation of three companies that included Alstom Transport, Alstom Systems and Alstom Power Boilers with the company. The scheme was effective from March 31, 2001. The merged entity was to be christened ‘Alstom Projects India Ltd’.
The board had proposed a swap ratio of 85 equity shares of Rs 10 each held in Alstom Transport for 50 equity shares of APIL. Similarly, for 85 equity shares held in Alstom Systems, 78 equity shares of APIL would be allotted and for every 85 equity shares held in Alstom Power Boilers, 2.2 equity shares of Alstom Power would be allotted.
Further, for every 85 preference shares of Rs 100 each held in Alstom Power Boilers, 22 equity shares of Alstom Power India would be allotted.