- Tomco-Hll Merger
Mumbai: Acara susunan acara Chemicals, a Tata group company, and Hindustan Lever's (HLL) Hind Lever Chemical compounds (HLCL) happen to be merging collectively to form what would be the second-largest fertiliser company in India. This is the third time the Tatas and HLL will be coming jointly and this time it is inside the fertilisers and chemicals businesses. Previously the two came together in the Hindustan Lever-Tomco deal in 1993 and Lakme-Lever in 1998. The Tatas keep 30 per cent and finance institutions hold 21 per cent levels in Acara susunan acara Chemicals. HLL holds 50-per cent share in HLCL and the institutional holding is in over on the lookout for per cent since on 31 December 2002. The planks of the two companies are meeting separately about 24 January 2003 to ratify the merger as well as the share-swap ratio. Sources nearby the deal reveal that the value of Tata Chemicals is significantly higher than HLCL's, hence the latter's shareholders will be issued shares from the Tata group company. Experts estimate the share-swap proportion will be in the range of 2 . 5 to 3: 1 вЂ” that is, installment payments on your 5 to three shares of Tata Chemicals for every reveal of HLCL held. The analysts say the merger involving the two corporations makes great business perception given their complementary qualities. The Rs 1, 516-crore Tata Chemical substances manufactures soda pop ash, sodium and fertiliser. Its fertiliser production primarily comprises urea. The Rs 1, 285-crore HLCL's fertilizer business covers di-ammonium phosphate (DAP) complex NPK fertilisers and sole super phosphate (SSP). With this combination Tata Chemical substances will be present in all fertiliser product categories such as urea-ammonia, NPK and DAP and will also assume a leadership location in soft drinks ash, sodium and good chemicals. Post-merger, Tata Chemical compounds will have around turnover of about Rs two, 750 crore, profits of over Rs 170 crore and supplies of above Rs one particular, 600 crore. Sources claim HLL, which will holds a 50-per penny stake in HLCL, will discover its holding dip to under 15 per cent although that of the Tatas in Tata Chemical substances may drop around...