×
Home Companies Industry Politics Money Opinion LoungeMultimedia Science Education Sports TechnologyConsumerSpecialsMint on Sunday
×

Mangalam Cement to merge Mangalam Timber with itself

Mangalam Cement to merge Mangalam Timber with itself
Comment E-mail Print Share
First Published: Tue, Aug 24 2010. 08 57 PM IST
Updated: Tue, Aug 24 2010. 08 57 PM IST
Kolkata: BK Birla group-controlled Mangalam Cement Ltd said on Tuesday it would merge with itself Mangalam Timber Products Ltd. Consulting and audit firm Ernst & Young has been asked to conduct a valuation of the two companies and recommend the share swap ratio for the merger, Mangalam Cement said in a stock market filing.
Following the announcement, shares of Mangalam Cement fell 2.63% to Rs157.50 on the Bombay Stock Exchange (BSE), while that of Mangalam Timber gained 4.56% to close at Rs34.40. BSE benchmark Sensex closed down 97.76 points, or 0.53%, at 18,311.59 points.
Meanwhile, another BK Birla group firm Kesoram Industries Ltd said in stock market filings it was consolidating its stake in the two firms being merged.
Kesoram said it had increased its stake in Mangalam Cement by 3.07% of the company’s equity capital to 13.79% through a transfer of shares from other promoter-controlled holding companies. Alongside, it bought from the market 83,462 shares of Mangalam Timber, or 0.46% of the company’s equity capital, raising its stake to 13.8%.
The BK Birla group owns 25.49% in Mangalam Cement, and 37.32% in Mangalam Timber.
Post-merger Kesoram, which is to be eventually controlled by group chairman B.K. Birla’s grandson Kumar Mangalam Birla, would have a substantial stake and is likely to be the single largest shareholder in Mangalam Cement.
B.K. Birla had said last year that Mangalam Cement would go to his granddaughter Vidula Jalan and her husband Anshuman Jalan. Both have been inducted on the board of Mangalam Cement.
Though he has tweaked his succession plan several times, he has always maintained that Kesoram is to be controlled by his grandson Kumar Mangalam Birla.
Comment E-mail Print Share
First Published: Tue, Aug 24 2010. 08 57 PM IST