Business Daily from THE HINDU group of publications
Thursday, May 17, 2007
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Business Daily from THE HINDU group of publications Thursday, May 17, 2007 ePaper |
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Corporate
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Mergers & Acquisitions Century Plyboards to take over 3 private outfits Our Bureau
MR SAJJAN BHAJANKA
Kolkata May 16 Century Plyboards India Ltd (Centuryply) is taking over three closely held private outfits engaged in the manufacture of plywood products. After the board meeting here today, Mr Sajjan Bhajanka, Managing Director, informed the media that the businesses of two Chennai-based outfits — Sharon Veneers and Sharon Wood Industries - and a Karnal-located unit — Century Panels - were being acquired through the merger route. Centuryply would soon propose a composite court-approved amalgamation scheme and the merger would be effective with retrospective effect from April 1, 2007. "Within a fortnight, the valuation exercise is expected to be completed to arrive at the share swap ratio," the official said. The combined capacity of these three outfits is 20,000 square metres per day. "This would double Centuryply's capacity," he added. According to rough estimates, asset values of these companies, including their brands, would not be less than the equivalent value of 25 lakh shares of Centuryply. The company proposes to issue fresh shares to complete the all-share merger deals. The Rs 10 face valued stock of Century Plyboards, a BSE small-cap index constituent, is currently trading at Rs 335 a share and has a paid-up capital of Rs 19.80 crore. After the mergers, this would increase the extent of valuation of the acquisitions. The company today also reported a 93 per cent jump in net profit to Rs 20.44 crore on stand-alone basis for the financial year to March 31, 2007. The consolidated net touched Rs 77.46 crore, recording a 224 per cent increase over that in the previous fiscal.
Fresh investments
The company also proposes fresh investments in a new plywood unit in Meghalaya, three cement units - one each in Siliguri, Guwahati and Kahalgaon and a ferro-silicon unit in Meghalaya in the next three years.
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