CFGL merger into GGL to be beneficial for shareholders

The merger of the Ghani Float Glass Limited (CFGL) into Ghani Glass Limited (GGL) would be beneficial for the shareholders of both the companies, and it would also strengthen the confidence of customers, banks and suppliers.
Chief Executive Officer (CEO) of Ghani Group of Companies Imtiaz Ahmed Khan stated this while briefing the participants of a function held to mark the merger of company, here on Monday.
Imtiaz said that state-of-the-art glass plants of GGL which are located in Haripur and Karachi supplying glass containers to all multinational and national pharmaceutical and food and beverages companies of Pakistan and also exporting its products to many countries and earning foreign exchange for the country. He further informed that the GFGL was set up with the project cost of over Rs 1.750 billion and stared production in July 2005 with the annual capacity of 130,000 tons. Ghani Group being leader in glass industry took a bold step and established first-ever state-of-the-art float glass plant in Pakistan at 29-km Lahore-Sheikhupura Road.
To ensure quality production of international standard more than 20 foreign engineers are deployed at plant. Previously, in Pakistan float glass was imported 100 percent from foreign countries and import bill was around Rs one billion. After start of production at Ghani Float Glass, import has almost stopped and the company is now earning foreign exchange for the country through export of float glass, he added.
The CEO further elaborated that after merger annual production capacity of Ghani Glass would increase to 300,000 tons, sales revenue will be over 4 billion rupees and the balance sheet size of the company will also be over Rs 4.5 billion. He explained that the merger built up the confidence of the shareholders on the company and before announcement of merger share price of GGL was quoted in the range of Rs 70. After announcement of merger share price jumped and at one stage, it touched Rs 110 and according to BMA Capital's research report, its real worth is about Rs 123.80 and market capitalisation is Rs 8 billion.