Financial Daily from THE HINDU group of publications
Saturday, Nov 30, 2002

News
Features
Stocks
Port Info
Archives

Group Sites

Corporate - Mergers & Acquisitions


Nicholas Piramal board okays Global Bulk merger

Our Bureau

MUMBAI, Nov. 29

The board of Nicholas Piramal India Ltd has approved the merger of Global Bulk Drugs & Fine Chemicals (GBDFC) with NPIL, which will be effective from January 1, 2003.

According to a company release, the merger is being effected at a cost of Rs 52 crore (exclusive of net current assets of Rs 16 crore).

The release added that the merger of GBDFC with NPIL will create an immediate platform to build a strong exports business for NPIL in APIs, intermediates and formulations. NPIL hopes to achieve an exports turnover of Rs 100 crore in 2003-04 as against Rs 7 crore in 2001-02 and Rs 35 crore expected in 2002-03.

NPIL will not issue any equity shares to acquire GBDFC; for a consideration of Rs 68 crore, NPIL will issue six per cent non-convertible preference shares of Rs 15 crore redeemable in four years, and assume debt of Rs 53 crore standing in the books of GBDFC.

This acquisition will not only enhance earning per share (EPS) but will also help improve the return on net worth (RONW), the release said.

Enam Financial Consultants Pvt Ltd acted as advisors to the merger.

GBDFC plant has a USFDA approval for the entire facility without any deficiency or non-conformity and also holds accreditations and approvals from HC of UK, TGA of Australia, European Drug Authorities, Canadian Drug Authorities, ISO 14000 and 9001.

GDBFC's plant manufactures APIs, intermediates and formulations for export to the regulated markets and the company has existing relationships with pharma majors in the regulated markets, including Teva, Andrx Corporation, Ivax and Apotex in the generics segment and Sanofi-Synthelabo and Zambon in new drug delivery (NDD) segment. The company currently exports to the European and Canadian markets and is expected to export to the US later this financial year.

Send this article to Friends by E-Mail
Comment on this article to BLFeedback@thehindu.co.in

Stories in this Section
Ford announces lucky draw for Ikon buyers


Keep off L&T stocks, SEBI tells Grasim
`SAT verdict a warning to cos not to play with rules'
Should `officer in default' cover independent directors also?
Deepak Roy to take over Diageo's IMFL business
Nicholas Piramal board okays Global Bulk merger
HPCL, GAIL form venture to sell eco-fuels in AP
OIL in pact with Venezuelan firm for exploration
`You can't open up economy with a small window' - Mr Hari N. Harilela, Chairman, Hong Kong-based Harilela group
BIFR confirms winding up of Real Value
No clear role yet for National Company Law Tribunal — Standing Committee not for dismantling BIFR
Loan subsidies to States to hit PFC bottomline
Invensys to expand IDC; mulls BPO centre
HLL banks on diversity to beat adversity


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |

Copyright 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line