Siemens Board recommends 190% dividend

Siemens Ltd has announced that the Board of Directors of the Company at its meeting held on November 23, 2006, inter alia, has recommended a Dividend of Rs 3.80 (i.e. 190%) per Equity Share of Rs 2 each for the Financial Year ended on September 30, 2006. {Previous Year - Re 14.50 (145%) per equity share of Rs 10 each).

Further the Company has informed that the Board of Directors of the Company at the said meeting has taken the following decisions, in principle, subject to receipt of all requisite consents, approvals, etc., of the members and statutory and regulatory authorities:

1. Divestment of 100% stake in Siemens Public Communication Networks Pvt Ltd:

The Board of Directors has decided, in principle, to divest / sale the Company’s 100% stake comprising of 12,425,000 Equity Shares of Rs 10 each in its subsidiary Siemens Public Communication Networks Pvt Ltd (SPCNL), Bangalore, to Nokia Siemens Networks India Pvt Ltd a Nokia Siemens 50:50 Joint Venture Company. This decision has been taken consequent upon the announcement by Siemens AG, Germany (SAG) for the merger of the Networks Business Group of Nokia and Siemens’ Carrier related operations for fixed and mobile networks worldwide.

2. Sale / transfer of COM EN Division of the Company:

The Board of Directors has also approved, in principle, the proposal for the sale / transfer of the Company’s Undertaking comprising of "Communication — Enterprise Networks Division" (COM EN) with effect from April 01, 2007 in favour of a new 100% subsidiary company to be incorporated by Siemens AG, Germany (SAG) in India for this purpose, consequent upon the global restructuring of the said business by SAG, Germany. This decision is subject to the approval of the Shareholders by Postal Ballots.

For both the above decisions, the Board of Directors has also constituted a Committee of the Directors to finalize the Valuation, Price Consideration and take all the decisions and steps, which are necessary and expedient for the implementation of the said decisions.

Source : Equity Bulls

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