Financial Daily from THE HINDU group of publications
Wednesday, Apr 03, 2002
Nalco Chem to buy Aquazur India, rules strong on bourses
KOLKATA, April 2
NALCO Chemicals India, which recently received approval from the Registrar of Companies for changing its name to Ondeo Nalco India, is ruling strong on the bourses on the back of an acquisition proposal.
Mr N. Khanna, Director and Company Secretary of the water treatment major, told Business Line that the company had set in motion a proposal to buy 100-per cent stake in Aquazur India, also a water-treatment company, from its US-based parent Ondeo Nalco and another UK-based group company, Aquazur.
Nalco Chem will purchase 15 lakh shares of Aquazur India's from Ondeo Nalco (US) and 35 lakh shares from Aquazur (UK) at an estimated cost of $2.7 million, Mr Khanna said. He expects the acquisition of Aquazur to be formalised by April-end. "After that, Aquazur would be merged with Ondeo Nalco India".
It is also in the process of merging its wholly-owned subsidiary, Aqua Chemicals & Manufacturing Systems Ltd (ACS), with itself.
The Kolkata-registered Nalco Chemicals' shareholders will meet here tomorrow to consider the scheme of amalgamation following relevant application to the Calcutta High Court for seeking approval to the merger proposal. The Chennai-registered ACS had already moved the Madras High Court for the merger proceedings.
In 1999, Nalco Chem had bought into ACS, which is in the business of water treatment equipment and execution of turnkey projects for water treatment. Currently, it is executing projects in South-East Asia and West Asia.
Mr Khanna said the fourth-quarter performance was marginally better than that in the third quarter. The overall financial performance of 2001-02 was better than that in 2000-01, he indicated. The company had posted a net loss of Rs 94 lakh in the year to March 31, 2001 against a net profit of Rs 6.85 crore.
The bottomline of 2000-2001 was affected to the tune of Rs 6.25 crore due to certain one-time adjustments and to the tune of Rs 2.07 crore due to interest on a long-term loan from the parent company. Nalco had also suffered foreign exchange loss of Rs 1.81 crore on the loan.
The stock closed at Rs 190 on the BSE on Tuesday. Its 52-week high and low were Rs 237.50 and Rs 130, respectively.
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