Adani Power to merge unit Growmore Trade in $531 mln deal

MUMBAI, July 7 (Reuters) - Adani Power will merge group firm Growmore Trade and Investment Private Ltd, Mauritius with itself, the company said on Thursday, in a stock deal worth 23.6 billion rupees ($531 million).

The merger is effective April 1, 2011, and would be at a share swap ratio of 16,615 shares of Adani Power of 10 rupees each for every 10,000 ordinary shares of $1 each of Growmore, Adani Power said in a statement to the exchange.

A total of 213.2 million shares of Adani will be issued to Growmore as a result of this swap deal, it said.

Ernst & Young Pvt Ltd were independent valuers to the deal and ICICI Securities provided a “fairness opinion”, it said.

No other details were provided.

Adani Power shares closed at 110.55 rupees at the National Stock Exchange on Thursday.

$1=44.4 Indian rupees Reporting by Manasi Phadke; Editing by Rosemary Arackaparambil