Mumbai, Nov. 23: Agrochemical major UPL Ltd today announced the merger of the group's seed firm Advanta with itself as part of its strategy to provide all agri-solutions through one single entity and enhance shareholder value.

After the merger, UPL's geographical reach will expand and result in cost savings of Rs 90 crore annually.

UPL, formerly known as United Phosphorous, holds 48.44 per cent in Advanta and the same will be cancelled after the merger. "The board of directors of UPL and Advanta today unanimously approved Advanta's merger with UPL, subject to approvals," UPL said.

According to the proposed amalgamation scheme, the shareholders of Advanta will get one share of UPL for each held in the seed company.

That apart, Advanta's resident shareholders, holding one share, will get three optionally redeemable convertible preference shares in UPL.

Non-resident shareholders of Advanta will get three compulsory convertible preference shares of UPL in exchange of one share in the seed company.

On conversion, 471 preference shares will be converted into 10 shares of UPL. Under the scheme, Advanta GDR holders holding one GDR will be issued 1.06 GDR in UPL.

"UPL will issue 77.45 million new equity shares (face value of Rs 2) and 181.83 million new preference shares (face value of Rs 10) based on Advanta shareholding pattern as on November 20 (assuming full conversion of FCCBs and exercising of all Esops)," it added.

The UPL scrip closed at Rs 441.95, down 3.50 per cent, on the BSE today.