Eastern Merchant buys 50% stake in Asian Woodwork

Eastern Merchant Plc announced it had decided to buy a controlling interest of Asian Woodwork Company Pvt Ltd.

It invested Rs. 4,879,960 to buy a 50% stake. The investment was through 487,996 shares priced at Rs. 10.  Asian Woodworks manufactures and exports brush handles and wooden furniture. It also bought 10% of Eamel Exports for Rs. 750, 000, buying 5,000 shares.

Eastern Merchant is an export based trading company whose core business is rubber. Profit After Tax in the year ending 31 March 2011 was Rs. 23.8 million. On Wednesday 96,200 of the company’s shares traded and the share closed at Rs. 28 down Rs. 3.60.