Nitco Tiles to amalgamate companies

Nitco Tiles Ltd has announced that the Board of Directors of the Company at its meeting held on March 02, 2007, has transacted the following:

1. Considered and approved the proposal for amalgamation of Shark Properties Pvt Ltd into the Company and Nitco Realties Pvt Ltd (NRPL) into Motivation Properties Pvt Ltd (MPPL) as per the terms and conditions mentioned in the composite scheme of Arrangement placed before the Board.

On the basis of valuation report, the composite scheme of Arrangement approved by the Board of Directors of the Company states the share exchange ratio to be 10 Equity Shares of the face value of Rs 10 each of the Company for every 27 Equity Shares of the face value of Re 1 each held in SPPL.

Pursuant to merger of NRPL and MPPL, since both NRPL and MPPL will be wholly owned subsidiaries of the Company, MPPL shall, issue and allot to the Company 10,000 fully paid up Preference shares ("Preference Shares") of Rs 10 each.

The Composite Scheme of Amalgamation is, inter-alia, subject to the necessary approvals under the Companies Act, 1956 including the High Court of Bombay, or any other competent authority.

2. The Board approved the proposal to increase the Foreign institutional Investor's limit upto 49% in the share capital of the Company, subject to the approval of members at General Meeting.

Source : Equity Bulls

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