TVS Electronics to sell Tumkur CMS plant to Incap Corporation, Finland

TVS Electronics Ltd has announced that the Board of Directors of the Company at its meeting held on February 26, 2007, inter alia, has approved the following subject to the approval of the Shareholders u/s 293(1)(a) of the Companies Act, 1956, to be passed through Postal Ballot u/s 192A of the Companies Act, 1956 read with the Companies (Passing of Resolutions through Postal Ballot) Rules, 2001 transfer the following businesses:

a. The Contract Manufacturing Services (CMS) Business at Tumkur to Incap Corporation, Finland for a consideration not less than the net book value of the said business.

b. The Contract Customer Support (CCS) Business to a wholly owned subsidiary of the Company to be formed for a consideration not less than the net book value of the said business.

The company is planning to increase u/s 94 of the Companies Act, 1956, the Authorised Share Capital of the Company from Rs 20,00,00,000 consisting of Rs 2,00,00,000 equity shares of Rs 10 each to Rs 25,00,00,000 consisting of 2,50,00,000 equity shares of Rs 10 each and consequently change the Memorandum of Association of the Company after approval of the Shareholders at an EGM to be convened.

The company is considering issue on preferential basis, not exceeding 36,00,000 Warrants, underlying Equity Shares, u/s 81(IA) of the Companies Act, 1956 subject to the applicable guidelines of SEBI (Disclosure & Investor Protection) Guidelines, 2000, to its Promoter, TVS Investments Ltd at one equity share for every one Warrant to be issued at a price to be fixed in accordance with SEBI (Disclosure & Investor Protection) Guidelines 2000.

The Board of Directors has accorded their in principle approval to establish a manufacturing unit In Uttaranchal.

Source : Equity Bulls

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