VSNL to hive off company's Retail Business Undertakings

Videsh Sanchar Nigam Ltd (VSNL) has announced that the Empowered Sub-Committee at its meeting held on February 16, 2007 has approved the proposal to hive off the Company's Retail Business Undertakings ("RBU") (comprising Broadband Services Undertaking and Retail Internet Services Undertakings) with all related assets and liabilities on a going concern basis.

The proposed hive off of the RBU as above would be effective April 01, 2007 into its wholly owned subsidiary viz DIL Internet Ltd, for a consideration of up to Rs 400 Crores, subject to obtaining necessary approvals, permissions and sanctions including approval of the shareholders of the Company in accordance with the requirements of the Companies Act, 1956.

The above Empowered Sub-Committee for the purpose was constituted by the Board in its meeting held on February 02, 2007.

Source : Equity Bulls

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