VSNL decides to hive off retail business undertakings

Videsh Sanchar Nigam Ltd (VSNL) has announced that, with reference to the earlier announcement dated February 17, 2007 whereby the Company had that the Empowered Sub-Committee at its meeting held on February 16, 2007, had approved the proposal to hive off the Company's Retail Business Undertakings ('RBU') (comprising Broadband Services Undertakings and Retail Internet Services Undertakings) with all related assets anti liabilities on a going concern basis.

The Board based on the recommendations of the empowered Sub-Committee decided that the hive off of the RBU with all related assets and liabilities may be done by way of a scheme of arrangement under the provisions of Sections 391 to 394 of the Companies Act of 1956 and that the proposed hive off of the RBU may be made effective March 01, 2007.

The Company has now informed that, the Board of Directors of the Company at its meeting held on March 14, 2007 has, in super session of the earlier resolutions passed by the empowered sub-committee, approved the proposal to hive off the Company's Retail Business Undertakings ('RBU') (comprising Broadband Services Undertakings and Retail Internet Services Undertakings) with all related assets and liabilities on a going concern basis by way of a scheme of arrangement under the provisions of Sections 391 to 394 of the Companies Act of 1956 and that the proposed hive off of the RBU as above would be effective March 01, 2007 into its subsidiary viz. DIL Internet Ltd, for a consideration of up to Rs 400 Crores, subject obtaining necessary approvals, permission and sanctions including approval of the shareholders of the Company in accordance with the requirements of the Companies Act, 1956.

Source : Equity Bulls

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