Gujarat Propack likely to merge with Cosmo Films

New Delhi, Nov 20: Leading packaging manufacturer Cosmo Films Ltd said on Tuesday that it was considering merging Gujarat Propack with itself.

“We are examining the possibility of merging Gujarat Propack with Cosmo Films. However, a final decision in this regard will be taken after the closure of open offer,” a company official said here.

Cosmo Films which recently acquired 76.51 per cent shares of Gujarat Propack in an all-cash deal worth Rs 87 crore, has announced an open offer for another 20 per cent in line with the Sebi takeover code.

The open offer at a price of Rs 29.25 per share for 1.54 million shares opened on November 19 and will close on December 18. Following the takeover of Gujarat Propack funded through internal accruals and short-term debt, Cosmo has raised its total capacity to 37,500 tonnes making it the largest BOPP (Biaxially Oriented Poly Propylene) manufacturer in the country. Acquisition of Gujarat Propack provided the company with certain synergistic advantages of several production lines at its two facilities in Baroda made it a sizeable producer internationally.

— PTI