Sabero Organics to merge with Coromandel

Coromandel International Limited has announced a decision to merge its subsidiary, Sabero Organics Gujarat Limited, a manufacturer of organic compounds, including agrochemicals, and intermediates, with itself. The merger is subject to approval of the stock exchanges, shareholders, creditors, concerned High Courts and other regulators as applicable.
 
Coromandel, along with its wholly owned subsidiary Parry Chemicals Limited and other Murugappa group entities, holds 74.94% equity stake in Sabero. Public shareholders of Sabero will be issued shares in Coromandel in the ratio of five equity shares of Rs 1 each of Coromandel for every eight equity shares of Rs 10 each of Sabero in terms of the scheme.
 
Kapil Mehan, Managing Director, Coromandel, commented, “The merger will not only enable the agrochemical business realise economies of scale but also enable Coromandel to leverage its distribution network to serve Indian farmers especially through the Mana Gromor retail stores. The proposed merger will enable the agrochemical business to upgrade its product portfolio and compete in global markets.”
 
Meanwhile, Coromandel has reported a consolidated sales turnover during the quarter ended 31 December 2013 at Rs 2756.18 crore, up 13.68% compared to Rs 2424.47 crore in the corresponding quarter last year. Consolidated profit before tax for the quarter stood at Rs 145.78 crore as compared to corresponding quarter last year Rs 70.96 crore. Coromandel registered consolidated net profit after tax for the quarter of Rs 95.57 crore (corresponding quarter last year Rs 68.86 crore).
 
Company’s subsidiaries, Sabero Organics reported a turnover of Rs 160.46 crores with profit after tax of Rs 3.72 crores (figures for corresponding quarter last year Rs 124 crores and Rs 2.03 crores).