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Oxford Mouldings acquires 53% in Suryodaya Plastics

C.R. Sukumar

HYDERABAD, March 24

OXFORD Mouldings Pvt. Ltd (OMPL), along with Shalimar Packaging Pvt. Ltd (SPPL) and Mr. Anil Jain & Associates (AJ&A), has acquired 20.56 lakh fully paid-up equity shares of Rs. 10 each of the Chennai-based Suryodaya Plastics Ltd (SPL).

These shares, representing 52.74 per cent of SPL's paid-up share capital, were acquired at a price of Rs. 4.13 per fully paid-up share for a total consideration of Rs. 85 lakhs. OMPL, SPPL and AJ&A have entered into a memorandum of understanding with the SPL promoter, Mr. Keshav Bhupal, and his friends and associates on Thursday.

The acquirers, part of the Mumbai-based Time Group of Companies, are engaged in the manufacture and marketing of a wide range of plastic products.

Oxford Mouldings, engaged in the manufacture of plastic moulded furniture under the brand name `Regal', has posted a net profit of Rs. 1.93 crores on a turnover of Rs. 8.5 crores during the last fiscal year. Shalimar Packaging, into the manufacture of in stant lawns and doormats under the brand name `Meadows' and `Duroturf' respectively, has earned a net profit of Rs. 92.07 lakhs on a turnover of Rs. 4.99 crores during 1998-99.

Suryodaya Plastics is engaged in the manufacture of a wide range of plastic moulded products and components such as TV cabinets, refrigerator crispirators, computer monitors, peripherals, automotive parts and other components of fast moving consumer good s and other related products.

SPL's factory is located at Sipcot Industrial Complex in Gummidipoondi, in Tamil Nadu. It incurred a net loss of Rs. 57.17 lakhs on a turnover of Rs. 9.9 crores for the year ended March 31, 1999.

The acquirers were of the view that the acquisition of SPL provides an appropriate opportunity to expand their product range and increase their market share in related products in terms volume as well as value.

Following the acquisition of 52.74 per cent holding in SPL, the acquirers now propose to come out with an open offer to the SPL shareholders to further acquire 7.8 lakh fully paid-up shares, representing 20 per cent of its paid-up equity, at a price of R s. 5 per share.

The acquirers have fixed March 28 as the specified date. They have appointed Ind Global Financial Trust Ltd, the Mumbai-based merchant bankers, as Managers to the open offer which begins on May 15 and closes on June 13.