Financial Daily from THE HINDU group of publications
Tuesday, Jul 16, 2002
Financial Daily from THE HINDU group of publications Tuesday, Jul 16, 2002 |
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Corporate
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Mergers & Acquisitions Gujarat Ambuja merger plan okayed Our Bureau
MUMBAI, July 15 GUJARAT Ambuja Cements Ltd proposes to merge subsidiary Ambuja Cement Rajasthan Ltd with itself, with the board of directors of both companies unanimously approving the merger, said a news release by Gujarat Ambuja. The boards have recommended an exchange ratio of one new share of Gujarat Ambuja Cements (GACL) for every 50 shares of Ambuja Cements Rajashtan (ACRL), based on the valuation report of M/s N M Raiji & Co, said the news release. This will lead to an increase in the share capital of GACL by 1.7 per cent, from Rs. 155.19 crore to Rs. 157.85 crore. Based on the valuation ratio, GACL will issue 26,62,424 shares to shareholders of ACRL. The current share capital of ACRL is about Rs. 261 crore, out of which 49 per cent, or Rs. 128 crore is owned by GACL. The management control of ARCL was acquired by GACL in March 2000. The proposed merger is subject to necessary approvals from the shareholders, BIFR and any other approvals as may be necessary, said the release. ACRL has a 1.5 million tonne cement plant along with a captive power plant of 21 MW, located in Rajasthan. Upon merger, the cement capacity of GACL will go up to 10.5 milion tonnes and with its subsidiary ACEL, the total capacity is now 12.5 million tonnes.
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