GESTETNER
MERGES WITH RICOH
Domestic office automation giants Gestetner India and Ricoh
India have announced their merger into a single entity.
"The feasibility
of the merger was approved by the Boards of both the companies,"
said Gestetner India managing director K Swetharanyan at a
press conference here.
The share-swap
ratio has been recommended at 1:6 whereby six shares of Ricoh
India would be alloted for one share of Gestetner India.
The merger decision
has been taken to maximise the operational efficiencies and
leverage the core strengths, Ricoh India Ltd Managing Director
Nilava Maitra said.
As per the proposed
scheme, Gestetner India would merge with Ricoh India subject
to the approval of the High Courts in Kolkata and Mumbai.
Both the companies
are the subsidiaries of 18 billion dollar Japanese automation
major Ricoh and command 22 per cent domestic market share
for digital multifunctional copiers with an annual combine
sales turnover of Rs 150 crore.
Ernst & Young
carried out the feasibility study of the merger.
Representative
of the parent company N Fukuda said Ricoh would be willing
to waive Rs 10.6 crore arrears of Ricoh India as part of the
overall capital restructuring plan.
The merged entity
would aim at doubling sales to Rs 300 crore with 30 per cent
market share by 2007, Fukuda added.
