Financial Daily from THE HINDU group of publications
Friday, Mar 25, 2005
Financial Daily from THE HINDU group of publications Friday, Mar 25, 2005 |
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Corporate
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Mergers & Acquisitions CLC merges with Spentex Our Bureau
Mumbai , March 24 CLC Global Ltd has been merged with Spentex Industries Ltd and the new company will henceforth be known as Spentex Industries Ltd. They are into the manufacture of yarn. Following the merger and on transfer of the assets liabilities from CLC Global Ltd to Spentex Industries Ltd, the company will issue an equity share of Rs 10 each as fully paid (after reduction) for every equity share of Rs 10 each of CLC Global Ltd. The share swap ratio will be 1:1. Mr Mukund Choudhary, Managing Director, Spentex Industries, was quoted in a press release as saying, "The merger will help make Spentex Industries Ltd financially strong as CLC Global Ltd is a cash rich company." CLC Global, he said, had cash reserves of around Rs 3.6 crore and would reflect in the balance sheet of Spentex post merger. Spentex Industries Ltd was taken over by the CLC Group on January 5, 2004. The deal involved taking over a debt of Rs 52 crore. Today the debt has fallen to Rs 24 crore. The merged entity will thus have access to funds for planned future expansion plans enabling the organization to double its capacity to manufacture value added yarn. At present the company has an installed capacity of 29,232 spindles that can manufacture 4,800 tonnes of yarn per annum. Post-merger 26,208 spindles
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