X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
ITC rethinking Rollatainers acquisition - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Nov 17, 1999

    ITC rethinking Rollatainers acquisition

    ITC's proposed acquisition of 51% stake in packaging major Rollatainers is in question. ITC top brass seems to be rethinking on the pros and cons of this deal.

    ITC Limited has interests in tobacco/ cigarettes, hotels, paper and packaging. It is also one of India's largest foreign exchange earners (FY99 Forex inflow: Rs 6.5 bn). ITC has a presence in the paper/packaging segment through ITC-Bhadrachalam Paperboards. The company had recently announced buy out of a majority stake in Rollatainers for a consideration of Rs 250 m, with the aim of becoming one of the largest paper packaging companies in the entire middle east Asia.

    However, there were serious differences between the two companies over the price of the acquisition. It seems both parties were unable to agree on profit and loss accounts as a result of which they are unable to arrive at an agreeable price of acquisition. Rollatainers had originally finalised a preferential allotment of 7 million shares at Rs 35 per share to ITC. Meanwhile, the stock price of the company steadily moved up on the bourses, leading to a disagreement on valuations between ITC and Rollatainers.

    Though the deal is not entirely off, it has definitely soured relations between the two companies. If the deal does go through, in spite of the current imbroglio it will be mutually beneficial for both companies. Rollatainers can make use of ITC's financial muscle to market its products in the overseas market. In particular, it can focus on expanding its liquid food packaging business, which it believes, has great potential. The company will make use of ITC's resources to upgrade and export technology and set up manufacturing facilities for sophisticated packaging formats.

    ITC, on the other hand, will benefit from Rollatainers understanding of the packaging intricacies and the goodwill it enjoys in the market. This combining of ideas and resources is aimed at increasing the company's high-end product portfolio and hence, improving returns on investment.

     

     

    Equitymaster requests your view! Post a comment on "ITC rethinking Rollatainers acquisition". Click here!

      
     

    More Views on News

    ITC: Demonetisation woes pull down business growth (Quarterly Results Update - Detailed)

    Feb 8, 2017

    ITC Ltd has announced third quarter results of the financial year 2016-2017 (3QFY17). The company has reported 4.7% YoY and 5.7% YoY growth in revenues and net profits respectively. Here is our analysis of the results.

    ITC: A Decent Quarter Amidst Challenging Environment (Quarterly Results Update - Detailed)

    Dec 7, 2016

    ITC has announced second quarter results of the financial year 2016-2017 (2QFY17). The company has reported 8% YoY and 10.5% YoY growth in revenues and net profits respectively.

    ITC: Numbers Go Nowhere in FY16... (Quarterly Results Update - Detailed)

    Jun 8, 2016

    ITC declared results for the quarter and year ended March 2016. During the year, the company's net revenues and profits rise by 1% YoY and 3% YoY respectively.

    ITC: A Flat Performance (Quarterly Results Update - Detailed)

    Jan 30, 2016

    ITC announced its results for the quarter ended December 2015. While revenues were up by 3% YoY, profits came in higher by 9% YoY.

    ITC: Flat numbers across... (Quarterly Results Update - Detailed)

    Nov 3, 2015

    ITC announced its results for the quarter ended September 2015. While revenues were down by 1% YoY, profits remained flat.

    More Views on News

    Most Popular

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    The Most Important Innovation in Finance Since Gold Coins(Vivek Kaul's Diary)

    Aug 10, 2017

    Bill connects the dots...between money and growth, real money and real resources, gold and cryptocurrencies...and between gold, cryptocurrencies, and time.

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

    Bitcoin hits an all-time high, is there more upside left?

    5 Steps To Become Financially Independent(Outside View)

    Aug 16, 2017

    Ensure your financial Independence, and pledge to start the journey towards financial freedom today!

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    ITC LTD SHARE PRICE


    Aug 22, 2017 (Close)

    TRACK ITC LTD

    • Track your investment in ITC LTD with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
    • Add To MyStocks

    ITC LTD 8-QTR ANALYSIS

    Detailed Quarterly Results With Charts

    COMPARE ITC LTD WITH

    MARKET STATS