Karuturi Networks Board recommends 1:1 Bonus Issue

Karuturi Networks Ltd has announced that the Board of Directors of the Company at its meeting held on March 01, 2007 has decided to recommend the issue of bonus shares in the ratio 1:1 and for this purpose an Extra-Ordinary General Meeting is being convened on April 02, 2007.

The Board also took on record the following:

1. Closure of the USD 25 Million Zero Coupon FCCB issue at a conversion price of Rs 240/- per share and appreciation of services rendered by UTI Bank, M/s. Silverdale Services India Ltd, Duetsche Bank for their valuable services.

2. The Board acknowledges the following FII investor - as stake holders in the Company.

a. Deutsche Bank
b. Credit Suisse First Boston
c. Lehman Brothers
d. Morgan Stanley
e. Bear Sterns
f. Old Lane UK
g. Hollinger Asset

3. The allotment by the Government of Ethiopia of 450 hectares of land to the Company's subsidiary - Ethiopian Meadows PLC for its Expansion plans, with an extended tax holiday of 7 years. In the light of the special recognition accorded to the Company's activity in Ethiopia, the Board urged the Managing Director to consider Expanding the Floriculture facility to a 225 hectare project to make it the largest floriculture project.

4. The board acknowledged that the Company needs to also parallel pursue in organic growth through acquisitions and urged the Managing Director to continue price negotiations with all target Companies.

Source : Equity Bulls

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