Update on Dabur of India de-merger plan

Following the approval of stockholders and creditors of a de-merger plan, India's Dabur is now filing a formal confirmation petition with the New Delhi High Court, the company said, noting that it is expected the Court will give its approval in time for the action to take place by the beginning of the third quarter of this year. In the original plan filed with the Court in May, the company said it planned to transfer assets amounting to 2.14 billion rupees ($46.6 million) relating to the pharmaceutical business to Dabur Pharma. The company's total asset base is 5.21 billion rupees, according to Business Line of India.

While the de-merger vote was taken in an open meeting, the company also conducted a mail ballot to get approval for the sales of its Daburgram manufacturing facility and delisting of its shares from seven stock exchanges in India, including one in New Delhi. It remains listed on two exchanges. The company has used the Daburgram plant to make ayurvedic medicines but, as part of a consolidation process, it has created new capacity in two other locations, Baddi and Narenderpur, where it has consolidated its manufacturing operations.