BoD approves amalgamation of Ansal Township with Ansal Properties
New Delhi, Apr 25 (UNI) The Board of Directors of Ansal Properties and Infrastructure Ltd (APIL), a leading real estate developer of the country, today approved the scheme of amalgamation of Ansal Township and Projects Ltd (ATPL) with itself.
Despite being a leading real estate developer in cities of Rajasthan and Punjab, ATPL is an unlisted company.
The amalgamation is subject to approval of the High Court and other legal procedures. The equity value of the combined entity shall be more than Rs 2300 crore.
The consideration of the said amalgamation is to be discharged by allotment of one equity share of Rs 5 each, of APIL for every two equity shares of Rs 2 each, held in ATPL.
Both the companies are engaged in the business of acquisition, development and sale in the real estate sector and including but not limited to construction of residential plots, commercial spaces including shopping complexes, integrated townships and farm houses.
The management of both companies believes that the said amalgamation would result in enhanced leveraging capability of the combined entity which in turn will allow undertaking future expansion strategies and tapping bigger opportunities in real estate construction and development industry.
APIL has projects in Uttar Pradesh and Haryana. Some of the key projects developed by the Company include "Ansal Plaza" Mall in South Delhi and a Township at "Sushant Lok" at Gurgaon.
On the other hand ATPL has its major projects in Rajasthan and Punjab.
It has executed housing and commercial projects in certain cities of these two states and has successfully launched or is in the process of implementing projects at Jaipur, Mohali, Jodhpur, Ludhiana.
Some of the key projects of the Company include residential and mini township projects "Ansal Sushant City" in Jaipur and Jodhpur, "Ansal Plaza" Mall in Ludhiana, etc.
The management believes that the amalgamation will result in the two companies consolidating their business operations and will lead to synergies of operations and a stronger and wider capital/financial base for future expansion thereby providing significant impetus to their growth.
The Board of Directors also believes that the amalgamation will also result in improved shareholder value for both the companies by way of improved financial structure and cash flows, increased asset base and stronger consolidated revenue and profitability.
UNI MP SS HT2105