Business Daily from THE HINDU group of publications
Saturday, Aug 11, 2007
ePaper
Business Daily from THE HINDU group of publications Saturday, Aug 11, 2007 ePaper |
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Corporate
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Mergers & Acquisitions Corporate Results - Paper, Board & Newsprint Speciality Papers buys 3 cos for Rs 328 cr
Our Bureau Mumbai, Aug. 10 BSE-listed Speciality Papers on Friday acquired three companies — Reliable Papers, Opel Paper Mill and Prime Industries — for a total consideration of Rs 328 crore. The company’s board has approved a valuation of Rs 265 crore for Reliable Papers, Rs 53 crore for Opel Paper Mill and Rs 10 crore for Prime Industries. Speciality Papers plans to raise Rs 100 crore through qualified institutional placement for future expansion and for acquisition of more companies. The company will obtain approvals from the Bombay Stock Exchange and other appropriate authorities before filing the scheme with the High Court. Mr Mekan Gala, Chairman and Managing Director, said: “Post-acquisition, our annual turnover will rise from Rs 45 crore to Rs 350 crore. The production capacity will jump from 27 tonnes to 100 tonnes per day. The acquisitions also catapult us to the league of top players in the paper industry.” Speciality Papers has reported a net profit of Rs 41.24 lakh in the first quarter of FY 08 against Rs 35.27 lakh in the same period last year. Total income was up 155 per cent to Rs 12.5 crore (Rs 4.91 crore). Profit before tax increased to Rs 46.49 lakh (Rs 38.27 lakh). The company’s shares on the BSE gained 11.56 per cent to Rs 52.
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