Pharmaceutical firm Cadila Healthcare on Tuesday said its shareholders have approved the restructuring of

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its consumer products division as subsidiary firm under Carnation Nutra Analogue-Foods for an agreed share swap ratio of 4:15.

The shareholders and unsecured creditors have approved a scheme under which Carnation would allot four shares to the shareholders of Cadila Healthcare, for every 15 shares held in the company, Cadila Healthcare said in filing to the Bombay Stock Exchange.

Under the scheme of arrangement, Cadila Healthcare would demerge its consumer products division (CPD), and merge Zydus Hospitals and Medical Research with itself. Carnation is a 61.56 per cent subsidiary of Cadila Healthcare.

The board of Cadila had earlier approved the modalities of the business restructuring and had said that the process would be completed by early 2009.

Pursuant to the restructuring, Carnation would continue to remain a listed subsidiary of the parent firm. However, the scheme of arrangement is subject to Gujarat High Court's approval.

Shares of the Cadila Healthcare were trading at Rs 330, down 0.15 per cent, while Carnation Nutra-Analogue Foods at Rs 92, down 7.68 per cent in the late afternoon trade on the BSE.