Prabhat Dairy: Board approves amalgamation of Cheese Land Agro

Prabhat Dairy, an integrated milk and dairy products company, informed that the company's board considered and approved the scheme of Amalgamation and arrangement. 
  
The Board at its meeting held on February 13, 2019 considered and approved the Scheme of the Amalgamation and Arrangement under Section 230-233 of the Companies Act, 2013 for the merger of Cheese Land Agro (India) Private Limited, a wholly-owned subsidiary of the company, subject to regulatory approvals. 
  
Prabhat Dairy will benefit from added resources and settled business of Cheese land Agro to its cattle feed segment. It will also lead to greater efficiency in the overall business including cash flow management, economies of scale and operations. Further, it will also ensure the optimum utilization of various managerial, technical and financial resources. The amalgamation will result in economies of scale, reduction in overheads including administrative managerial and other expenditure operational rationalization, organizational efficiency and optimal utilization of resources by the elimination of unnecessary duplication of activities and related costs. 
  

Stock price of Prabhat Dairy jumped more than 4 per cent on Friday after the announcement. It touched an intraday high of Rs 56.45. At 3:20 hrs Prabhat Dairy was quoting at Rs 55.60, up by 2.87 per cent.