In its communication, BSE said it has no adverse observations on the proposed scheme from the perspective of listing regulations, enabling the companies to file the merger proposal before the National Company Law Tribunal (NCLT).
The exchange, however, directed the companies to make additional disclosures to shareholders before seeking approval for the scheme.
These include details of pre- and post-merger shareholding patterns, assets and liabilities proposed to be transferred, pending litigation or regulatory proceedings, promoter reclassification plans, and Sapphire Foods Mauritius’ proposed stake sale to Arctic International.
BSE also clarified that its observations should not be interpreted as an approval of the merger. The exchange said it does not certify the financial soundness of the scheme or the accuracy of statements made by the companies in relation to the transaction.
The observation letter will remain valid for six months, during which the companies are required to submit the scheme to the NCLT for further consideration.
The proposed combination is expected to create one of India’s largest quick-service restaurant operators, bringing together the franchise businesses of brands such as KFC and Pizza Hut under a single entity.
