The Hindu Business Line : Mirza Tanners' Noida unit merged; net climbs

MIRZA Tanners Ltd has announced the merger of its Noida-based private limited company — Leather Trends Private Ltd — with the listed entity. The merger is expected to bring about optimal utilisation of the operational synergies of the two companies, a company statement said.

"Mirza Tanners feels substantial benefits will be realised by the merger of Leather Trends Private Ltd into the company. Rapid expansion and the consolidation of the ladies as well as gent's footwear business after the merger will be optimal," the statement said.

PricewaterhouseCoopers (PwC), which undertook a valuation of both companies, recommended a swap ratio of 5:2. After the merger, the shareholders of Leather Trends will be issued 22.50 lakh shares of Rs 10 each of Mirza Tanners. The latter's capital, after the merger, will increase by Rs 2.25 crore to Rs 18.54 crore, the release said.

Mirza Tanners declared a 57.36 per cent jump in net profit during the second quarter of the current fiscal at Rs 7.05 crore. The company reported a 28 per cent growth in turnover at Rs 63.92 crore during the three-month period, as against a turnover of Rs 50.05 crore during the same period in 2003-04.

During the first six months of the current fiscal, the company has reported an increase of 29 per cent in turnover at Rs 112.36 crore, while net profits have gone up 45 per cent to Rs 10.33 crore. Profit before tax has shown a growth of 68 per cent at Rs 16.31 crore.

More Stories on : Mergers & Acquisitions | Leather

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