Zandu Pharmaceutical mulls merger with Emami

Zandu Pharmaceutical mulls merger with Emami
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First Published: Mon, Mar 30 2009. 09 11 PM IST
Updated: Mon, Mar 30 2009. 09 11 PM IST
Kolkata: Zandu Pharmaceutical Works Ltd said in a stock market filing on Monday that its board had decided to weigh options on merging the company with Emami Ltd, the Kolkata-based consumer goods maker, which for around Rs700 crore had acquired 70.34% stake in it in October after a protracted takeover battle.
A committee of five directors has been formed, which would evaluate restructuring and reorganizing of business through merger, demerger or any other arrangement, Zandu’s stock market filing said.
When contacted, Emami spokesperson said, The committee may take around a month to form a view on how best to integrate the operations of the two companies. Though he didn’t name the members of the committee, he said it included independent and promoter directors of Zandu.
The committee may seek the advice of tax experts and merchant bankers to decide, he added.
Zandu shares fell by 2.25%, or Rs103.60, to close at Rs4502.70 on the National Stock Exchange, or NSE, on Monday, while the bourse benchmark S&P CNX Nifty index declined 4.2% to 2978. Emami shares gained Rs13.70, or 6.58%, to close at Rs221.75 on NSE.
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First Published: Mon, Mar 30 2009. 09 11 PM IST