Sintex Industries to acquire US based Wausaukee Composites Inc

Sintex Industries Ltd has announced that a meeting of the Committee of the Board of Directors of the Company held on May 31, 2007 has approved acquisition of 81% of the shareholding of Wausaukee Composites Inc ("WCI"), a company organized under the laws of the State of Wisconsin, USA by the Company. The Company has acquired 81% of the shareholding of WCI in the first tranche and the balance shareholding subsequently. The acquisition of the shares of WCI by the Company is undertaken by the Company’s step down subsidiary Sintex Holding USA, Inc.

WCI is a technologically Sound company offering large components with complex design parameters. WCI has an established presence in the medical imaging, mass transit, industrial / agricultural equipment, wind energy, commercial furnishings, recreation and corrosion-resistant materials handling sectors. "Composites" is a huge and growing market globally. Composite offers better strength to weight ratio, non corrosion, weather ability, design flexibility and molding ability, heat & chemically resistant and also offers electrical insulation properties. The Company believes that the acquisition could help both the Company and WCI to expand their product portfolio as well as market penetration and development of products through the Company’s cost advantages and potential access to the Indian market coupled with the market reach and superior application technology of WCI.

Further the Company has informed that, the Committee of Directors has also authorised the Company to execute various documents relating to the above acquisition.

The stock was trading at Rs.232.50, up by Rs.6.35 or 2.81%. The stock hit an intraday high of Rs.237.50 and low of Rs.230.80. The total traded quantity was 107670 compared to 2 week average of 166933.

Source : Equity Bulls

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