VSNL clarifies on land demerger News Item

With reference to the news item appearing in leading daily, titled "VSNL Land Assets to be Released; Company Unlikely to benefit", Videsh Sanchar Nigam Ltd (VSNL) has clarified as follows:

With reference to the topic "Demerger of Surplus Land" on Page 18 of VSNL’s Annual Report for the year 2005-06, the text reproduced below:

"Under the terms of the share purchase and shareholders' agreement signed between the parties at the time of privatisation, it was agreed that certain identified lands would be demerged into a separate company. It was further agreed that if for any reason the Company cannot hive off or demerge the land into a separate entity, alternative courses as stipulated in the share purchase and shareholders' agreement would be explored. A draft scheme of demerger has been presented to the Company Board, and the parties to the shareholders' agreement are currently examining the legality and feasibility of implementing the scheme. The land identified for demerger at different locations measures 773.13 acres and carries a book value (as indicated in the accounts) of Rs 1.64 million."

Further the Company has informed that till now no intimation of any further development on the subject has been received by the Company.

Source : Equity Bulls

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