NEW DELHI, February 6: The swap ratio for the merger of Samtel Electron Devices Ltd (SEDL) with Samtel Color has been fixed at 10:17. The merger was approved by the board of directors of both companies on Friday.The merger of the Rs 64 crore Samtel Electron with the Rs 300 crore Samtel Color, which is subject to the approval of Delhi and Allahabad High Courts and shareholders of both the companies, will be effective from April 1, 1997.
Samtel Electron share price on Thursday was Rs 18.10 while Samtel Color was trading at Rs 10.40 on the National Stock Exchange. The valuation of the share exchange ratio was worked out by Y H Malegam of S B Billimoria and Co. The equity base of Samtel Color post-merger will go up to Rs 40 crore, from the existing level of Rs 24.48 crore. Samtel Electron Devices has equity base of Rs 10.02 crore.
The merged entity is expected to close this financial year, ending March 1998, with turnover of Rs 550 crore and net profit of Rs 10-12 crore, Samtel Color chairman and managingdirector Satish K Kaura said here at a press meet.
The promoters will have 50 per cent stake in the merged entity while the rest 50 per cent would be held largely by the public. The financial institutions will have a small stake in the company. At present, the promoters have 40 per cent stake in Samtel Color and 67 per cent stake in Samtel Electron.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
