Mindteck India Board recommends 10% dividend, approves acquisition of companies

Mindteck India Ltd has announced that the Board of Directors of the Company at its meeting held on June 29, 2007, inter alia, has approved the following:

1. Approved the acquisition of 100% of the equity of the following four off-shore Companies viz. (1) Mindteck UK Ltd., for a consideration of US$ 0.50 million (2) Mindteck Singapore Pte Ltd for a consideration of US$ 2.50 million (3) Chendle Holdings Ltd. for a consideration of US$ 6.60 million and (4) ICI Tech Holdings Inc. for a consideration of US$ 21.00 million ("Target Companies"). The consideration for the acquisition of the Target Companies is to be paid by a combination of cash and fresh issue of shares of the Company and is subject to all necessary statutory and regulatory approvals and will be in accordance with the provisions of all applicable regulations.

2. Approved the simultaneous issue of new equity shares for an aggregate consideration not exceeding US$ 50 million (i) of upto 20,000,000 equity shares of the Company to shareholders of the Target Companies in consideration for the acquisition of the shares of the Target Companies, and (ii) of upto 5,000,000 equity shares of the Company to financial investors on a private placement basis, in each case, at a price not lower than the price determined in accordance with the applicable SEBI Guidelines and subject to all necessary shareholder and regulatory approvals and in accordance with the provisions of all applicable regulations.

3. Approved and recommended to the Company's shareholders, declaration of dividend @ 10% for the year ended March 31, 2007.

Source : Equity Bulls

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