Permanent Magnets board approves amalgamation

Permanent Magnets Ltd has announced that the Board of Directors of the Company at its meeting held on October 10, 2006, specifically to consider the further issues involved in the proposed amalgamation of three group Companies with the Company and arrangement between the Preference shareholders of the Company and the Company. The outcome of the said meeting is as given below:

1. The Board approved, subject to all approvals required under the law, a composite Scheme of Amalgamation of the three group Companies with the Company and arrangement between the Preference Shareholders of the Company and the Company.

2. The Board considered and adopted the Report of the Valuer in the formulation of the Scheme for determining the share exchange ratio with the shareholders of the three Companies and the Preference Shareholders. The exchange ratio as per the Valuer’s report are as under:

i. To Shareholders of Taparia Magneties Pvt Ltd: To be allotted 13 equity shares of face value Rs 10/- of the Company for every one equity share of Rs 10/- each of Taparia Magnetics Pvt Ltd.

ii. To Shareholders of Sampada Capital Services Ltd: To be allotted 19 equity shares of the face value of Rs 10/- each for every one equity share of Rs 10/- each of Samapada Capital Services Ltd.

iii. To Shareholders of Suyog Agencies Ltd: To be allotted 1 equity share of Rs 10/- of the Company for every one equity share of Rs 10/- each of Suyog Agencies Ltd.

iv. To Preference Shareholders of Permanent Magnets Ltd: To be allotted 471 equity shares of the face value of Rs 10/- each in the Company for every 1000 Preference Shares of Rs 10/- each of the Company.

3. The Board authorized the following individuals to Initiate steps to obtain the necessary approvals to the Scheme with authority to execute/sign the necessary papers singly for and on behalf of the Company:

i. Mr. S S Taparia, Managing Director

ii. Mrs. Bhavana Shah, Company Secretary

iii. Mr. Sharad Taparia, General Manager.

Source : Equity Bulls

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