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13. April 2009

USA - Titagarh Wagons to merge Titagarh Steel with itself

Titagarh Wagons on Saturday decided to merge Titagarh Steel an associate and listed company, with itself. Mr Umesh Chowdhary vice chairman & MD of TWL told Business Line that the company had short listed five consultants including KPMG, Grant Thornton and Haribhakti & Co to select a valuer for the merger exercise. He said that “We expect to choose the valuer and have the valuation report within a month. The swap ratio would be arrived at after the report is received.”

TSL’s Board also approved the merger proposal on Saturday. It manufactures bogies, couplers and CMS crossings. Its foundry capacity is 15,000 tonnes a year, while TWL’s foundry capacity is currently placed at 10,000 tonnes a year. As bogies and couplers constitute 20 per cent of wagon manufacturing, the proposed merger would give TWL a synergy advantage as also raise the capacity base.

TWL’s Board has also proposed merger of Titagarh Biotec a subsidiary, with it. This is being done as the management has decided to abandon the bio-diesel manufacturing project, which it was considering to take up.

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