MRO TEK Ltd to Buy Back shares from open market upto Rs.55

MRO TEK Ltd has announced that the Board of Directors of the Company at its meeting held on March 30, 2007, has approved said proposal of the Buy Back of the Company’s own fully paid-up Equity Shares of Rs 5 each, from open market through stock exchange mechanism, in accordance with the provisions contained in the Articles or Association, Section 77A, 77AA, 77B and other applicable provisions of the Companies Act, 1956 and the provisions contained in the SEBI (Buy Back of Securities) Regulations 1998 Including any statutory modifications and amendments from time to time for the time being in force.

The said Buy Back proposal is approved, in keeping with the Company's desire to maximize returns to investors and enhance overall shareholder value by returning surplus cash to shareholders in an investor-friendly manner, and as an efficient mechanism for providing an exit opportunity to those shareholders who so desire in a manner that does not substantially impact the market price of the Company's shares to the detriment of the continuing shareholders, and expecting the Buy Back also to enhance the earnings per share of the Company in future, and create long-term shareholder value.

The Board of Directors has approved the proposal on the following precincts:

- Buy Back shall be from open market through stock exchange mechanism;

- Buy Back will be based on the price quotations ruling at that particular time, subject to a maximum of Rs 55 per share, which price has been arrived at, after considering the stock market quotation, book value per share, and the possible impact the buy back may have on the Earnings Per Share of the Company, offering a premium of approximately 6% over the dosing price on March 29, 2007 - the day prior to the date of board meeting in which buy back offer was approved;

- Upto a maximum limit of Rs 8,25,00,000 for the buy back, which will be financed out of the free reserves of the Company;

- Upto a maximum of 25,60,000 equity shares of Rs 5 each;

- The actual number of equity Shares to be bought back would depend upon the average price paid for the equity shares bought back and the amount deployed in the Buy Back;

- No promoter and no persons in the control of the Company shall tender their equity shares to the Company in the Buy Back.

Arrangements are being made to publish the requisite Public Notice, and comply with other Statutory requirements in this regard.

Source : Equity Bulls

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