Birla Group company Mangalam Cement on Tuesday said its board has given in-principle nod for the merger of sister firm Mangalam Timber Products with itself.
In a communique to the Bombay Stock Exchange, Mangalam Cement also informed that the board has also gave its go ahead for the appointment of the consultancy firm Ernst and Young to give "their expert opinion on the valuation as well as recommending the fair exchange ratio".
Group patriarch B K Birla had last month said though he was in favour of merging the two outfits, "but others are not willing", indicating the directors of profit making Mangalam Cement.
Mangalam Timber Products went into the red last fiscal with a net loss of Rs 1.23 crore against a Rs 1.5 crore net profit in the previous fiscal. It had recorded Rs 67.56 crore income in 2009-10 fiscal compared to Rs 71 crore a year-ago.
Mangalam Cement, which has a two million tonnes per annum facility at Kota in Rajasthan, had recorded Rs 622.34 crore income in 2009-10 compared to Rs 566.13 crore a year-ago. Net profit of the company in the last fiscal was Rs 118.81 crore against Rs 97.16 crore in the previous fiscal.
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