Gwalior Chemicals - Interesting opportunity

Investing values blog has an written an interesting opportunity about Gwalior Chemicals.
Gwalior Chemicals announced on the 8th of June that it was selling its chemical business to Lanxess. The total enterprise value of the deal is Rs 536 crores with Lanxess taking over debt of Rs 156 crores. The equity value accruing to the company would be Rs 380 crores. The company would be still left with a plant at Ankhleshwar.The management has gone on record saying that they intend to return 100 crores out of Rs 380 crores to the shareholders either thru a one time dividend or share buyback.The current equity capital of the company is Rs 24.67 crores.So we are saying that the shareholder will accrue a sale value of Rs 154 per share out of which the company intends to return approximately Rs 40 per share either in the form of dividend or share buyback.

http://investingvalues.blogspot.com/2009/06/gwalior-chemicals-special-situation.html
http://investingvalues.blogspot.com/