Mumbai, May 9: The board of Jindal Vijayanagar Steel (JVSL) today approved the merger of three companies with itself. These are Euro Ikon Iron & Steel, Euro Coke & Energy and JSW Power.

Euro Ikon, which was promoted by UK-based trading firm Mineral Euro Asia, is a blast furnace company, while Euro Coke ? floated by Swiss firm Dufferco ? is a coke oven battery company.

The three companies will become one under a scheme of amalgamation. Shareholders of Euro Ikon will get one share of JVSL for every 16 held. Similarly, owners of every 19 Euro Coke shares get one share of JVSL. Shareholders of JPL shares will get one JVSL share for 25 held.

Post-merger, the aggregate equity capital of JVSL will increase by Rs 17.99 crore.

Senior officials of JVSL told The Telegraph that Mineral Euro Asia will continue to hold 4.14 per cent in the company, while Dufferco will own 3 per cent.

JVSL had appointed RSM & Co and ICICI Securities Ltd as consultants and ICICI Securities and Deloitte Haskins & Sells as valuers to evaluate the feasibility of merging the three entities with itself.

The consolidation is being done as the operations of these entities are core to the integrated workings of JVSL.

The company had entered into strategic tie-ups for setting up these projects due to certain restrictive covenants by lenders at that time. Euro Ikon is a 0.9-million-tonne blast furnace company set up at a cost of Rs 295 crore. Euro Coke consists of coke oven batteries that have a capacity of 0.62 million tonnes. The project was set up at a cost of Rs 195 crore.

JVSL, which declared its annual results last month, is now expanding its board by inducting more independent directors. Antony Paul Pedder, former chief executive of British Steel plc, has joined the board. Apart from Pedder, Vijay Kelkar, ex-finance secretary, and Sudipto Sarkar, a practising senior advocate, have been appointed additional directors.