Date:27/06/2006 URL: http://www.thehindubusinessline.com/2006/06/27/stories/2006062702510300.htm

Back Novopan board okays entities' merger plan

Our Bureau

Hyderabad , June 26

The board of directors of Novopan has approved a proposal for merger of its group entities with itself "to form a single and integrated entity offering higher returns, a strong growth profile and synergies."

Following the decision the entities of GVK Novopan Industries, GVK Petrochemicals Private Ltd and Novofurniture Private Ltd would merge with Novopan Industries, Mr G.V. Krishna Reddy, Chairman of the company, said here in a press release.

Enhanced capacity

GVK Novopan is engaged in manufacture and sale of pre-laminated particleboards with an installed capacity of 150 cubic metres a day. "This would enhance Novopan's production capacity by about 150 per cent," he said.

GVK Petrochemicals manufactured high quality resins and supplied the material to Novopan. The third company, Novofurniture, was into interiors decoration and modular furniture making.

"As part of the merger proposals, investments to the tune of Rs 25.32 crore standing in the books of Novopan are proposed to be transferred to GVK Novopan against transfer of their assets and liabilities and net consideration arrived at. Novopan would issue 31.17 lakh equity shares to the shareholders of above companies," the press release said.

The share capital of the company would go up to Rs 11.91 crore from the present Rs 8.79 crore after the merger.