Aftek Board approves merger of Elven Micro Circuits & C2Sillion Software Solutions with the Company

Aftek Ltd has announced that the Board of Directors of the Company at its meeting held on December 08, 2006 has approved a Scheme of Amalgamation u/s 391 to 394 of the Companies Act, 1956 of C2Silicon Software Solutions Pvt Ltd and Elven Micro Circuits Pvt Ltd (EMPL), into the Company.

EMPL is in the business of high-complexity chip network solutions. C2Sillion is a wholly owned subsidiary of EMPL, EMPL has a paid up equity capital of Rs 1 crore and expected to clock sales of USD 6 million by the end of FY 2007. The Company has a paid up share capital of Rs 17.33 crore.

According to the Scheme of Amalgamation, EMPL shareholders will he issued 123 shares of the Company (face value Rs 2), for every 100 shares of EMPL (face value Rs 2) held.

"EMPL has created a unique niche in its business and the merger is aimed at exploiting operational and marketing synergies between EMPL and Aftek. It will also help the merged entity to compete effectively in the international market as well as to raise resources for future expansion, thanks to a larger balance sheet,"; said Mr Ranjit Dhuru, Chairman and Managing Director of the Company.

Post merger of the Company's equity capital will go up to Rs 18.56 crores. The promoter shareholding in the Company will go up to about 17%.

M/s Dalal and Shah, Chartered Accountants have worked out the Share Exchange Ratio. RSM Advisory Services Pte Ltd are advisors to the restructuring exercise.

The Scheme is subject to requisite consent, approval of requisite majority of shareholders, lenders, creditors of the Company, C2Silicon and EMPL, the Bombay High Court and the Karnataka High Court at Bangalore and other regulatory authorities.

Source : Equity Bulls

Keywords