The Board of Directors of Chemplast Sanmar Ltd at their meeting held today (January 25, 2003) has subject to the approvals of the shareholders, the Madras high court and other concerned authorities approved a scheme of arrangement effective January 01, 2003, in terms of which the company's shipping undertaking would be demerged and vested with Sanmar Properties and Investments Ltd.

The shipping undertaking consists of one ship, investment and advances to Sanmar Shipping Ltd through Polygon Holdings Ltd.

The scheme also envisages merger of Polygon Holdings Ltd and two investment holding companies of Sanmar Properties and Investments Ltd (SPIL).

Under the scheme, on a record date to be fixed Chemplast equity shareholders would receive 31,98,383 equity shares of SPIL in the ratio of one equity share of SPIL for every eleven equity shares held by them in Chemplast and Preference Shareholders of Chemplast would receive 29, 500 Cumulative Redeemable Preference Shares of Rs 100 each held by them in Chemplast.