CHENNAI: The Kalpathis-owned Buckingham Real Estate and Assets Developers (Madras) Ltd. (BREAD) will be merged with SSI Ltd.

The Kalpathis hold 45 per cent stake in SSI, foreign institutional investors (FIIs) around 15 per cent, the public 29 per cent and corporate bodies the rest.

The swap ratio for the merger is 642 equity shares of SSI for each share of BREAD.

The share capital of BREAD comprises 50,070 equity shares of Rs. 10 each. Based on the exchange ratio determined by an independent valuer, a total number of 3.21 crore fully paid equity shares of Rs.10 each of SSI will be issued to the shareholders of BREAD. The merger will take effect from March 31, 2006. It is, however, subject to approvals from various regulatory and other institutions.

BREAD (formerly Binny Real Estate and Asset Development Ltd.) is the owner of 70-acre property at Perambur here. BREAD had acquired the property from Binny under the auspices of the BIFR (Board for Industrial and Financial Reconstruction) some time in 2003 for around Rs. 62 crore. The Kalpathis and the G. H. Reddys owned BREAD jointly.

The company had also entered into a joint development agreement with the Runwals of Pune.

The merger of BREAD comes in the wake of the Kalpathis buying out the Reddys in BREAD for a consideration of Rs. 100 crore. Much earlier, the Kalpathis had revoked the joint development pact with the Runwals for a compensation of Rs. 16 crore.

The 70-acre Perambur property offers 8.3 million square feet of residential-cum-commercial integrated development potential.

SSI is now planning to develop an integrated township around the property.SSI projects revenue from the project to be in excess of Rs.1,500 crore over the tenure of the project.

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