Sundaram Multi Pap Ltd has announced that the Board of Directors of the Company at its meeting held on May 12, 2007 has considered the following:
1. The Board of Directors has consented for the acquisition of Two Paper Mills through Amalgamation, namely M/s. Sihora Paper Mills Ltd, Nagpur and M/s. Vidarbha Paper Mills Ltd, Nagpur, Maharashtra.
M/s. Vidarbha Paper Mills Ltd has a capacity of 21,000 TPA of Printing Paper manufacturing capacity and M/s. Sihora Paper Mills Ltd has a capacity of 4800 TPA capacity of Printing, Writing & Packaging Paper Capacity, which is further getting scaled up currently.
2. The Board of Directors has consented for a total valuation of Rs 60 crores for the acquisition of these two Companies through amalgamation.
3. Accordingly the Board also gave consent for the Amalgamation Swap ratio of 1 share of M/s. Sundaram Multi Pap Ltd of Rs 1 Paid Up for every 6.665 shares of M/s. Sihora Paper Mills Ltd and M/s. Vidarbha Paper Mills Ltd (Rs 1 Paid Up) each.
4. The Board of Directors took on note that the Above acquisitions will add greater strength to the Company from the perspective that they provide a back bone support for the Branded Note Book Business in which the Company is in and also with captive capacities now adding under backward integration, the Company will be in a position to save upto Rs 5 crores and to that extent improve its net margins going forward.