The Hindu Business Line : Novopan gets HC nod for merger

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Hyderabad Jan. 25 Novopan Industries Ltd has received approval from the Andhra Pradesh High Court for the merger of three of its entities with itself.

The three entities are particle board division of GVK Novopan Industries Ltd, resin manufacturing division of GVK Petrochemicals (P) Ltd, and amalgamation of Novofurniture (P) Ltd, the company informed the BSE on Thursday.

The merger would be effective from April 1, 2006. It enhances the company's production capacity by more than 100 per cent and makes it the largest particle board manufacturer in the country, Novopan Industries said.

The merger process has also resulted in backward integration with the merger of resin division, which produces resins, the critical raw material required for the manufacture of particle boards.

Commenting on the development, Mr G.V. Krishna Reddy, Chairman, said, "The completion of merger of Novopan is a great day for all our investors, customers, employees and other stakeholders. We expect to improve our leadership position in the market with the enhanced capacity.''

The company has further informed the BSE that a meeting of the board of directors will be held on January 31, to consider the High Court order and the consolidated results of the merged undertaking for the quarter ended December 31, 2006.

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