Speciality Papers to acquire 3 companies

Speciality Papers Ltd has announced that the Board of Directors of the Company at its meeting held on June 29, 2007, inter alia, has discussed and transacted the following:

The Board his discussed various acquisition proposal's put forward by M/s. Firstcall India Equity Advisors Pvt Ltd, Mumbai, considered and decided to acquire through Merger / Amalgamation the following Companies.

1. Reliable Paper (India) Ltd
2. Opel Paper Mill Ltd &
3. M/s. Prime Industries

Reliable Paper (India) Ltd is a manufacturer of MG Tissue, Gift Wrapping Tissue, MG Poster Papers, TD Loaded Posters, and Laminating Base Poster Paper. The Company is also putting up 150 TPD plant for manufacturing coated duplex board both white back & grey back and folding box boards at the same location. Plant for Coated Duplex Board is expected to commission in the year 2008. It has its manufacturing facility located at Taluka Mahuva, District Surat. The Company did a total sale of Rs 101.59 crores for the year 2005-06 and achieved provisional sales of Rs 151.71 crores with a PAT of Rs 4.06 crores, for the year 2006-07.

Opel Paper Mill Ltd is into value added processing of making chromo paper, cast coated paper and other speciality coating paper with its plant located at Vapi, Gujarat. For the year 2006-07, the Company has achieved sales of Rs 23.72 crores.

Prime industries is into conversion of Hygienic Tissue Paper Products like Paper Napkin, Toilet Rolls, Kitchen Towel Rolls, C Fold Napkin etc with its facilities located at Dadra, Near Silvassa.

With the above M&A activity taking place the Company is going to emerge as one of the leading players in the Paper Industry. The Board of Directors decided to meet once again on July 05, 2007, to discuss and decide on the M&A modalities and associated valuations and swap ratio's etc.

Source : Equity Bulls

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