Hitech Entertainment Board approves Merger / Amalgamation of Geosoft and Iridium Technologies

Hitech Entertainment Ltd has announced that the Board of Directors of the Company at its meting held on August 30, 2006 has approved the merger / amalgamation of their two subsidiary (51% owned) companies namely M/s Geosoft Technologies (Trivandrum) Ltd and M/s Iridium Technologies (India) Pvt Ltd into a single legal entity, to be known as Accentia Technologies Ltd.

The merger / amalgamation will take effect after consents and approvals from the concerned authorities, Shareholders and Respective High Courts Concerned.

The merger / amalgamation scheme as proposed by M/s Rajesh Shah & Co, Advocates, has been approved by the Board of Directors of the Company and the merger scheme envisages a share swap ratio of "2.10 shares of the Company for every one share of Geosoft Technologies (Trivandrum) Ltd" and "2 shares of the Company for every one share of Iridium Technologies (India) Pvt Ltd".

The Amalgamation / Merger scheme will have an "Appointed Date" of April 01, 2006.

The Share Swap Ratio’s as mentioned above are for the residual stake in the above mentioned two 51% owned subsidiary companies of the Company.

The share exchange ratio was arrived at based on the recommendations made by M/s Dilip Jagad Co, Chartered Accountants, who acted as valuers and advisors to the transaction.

The merger / amalgamation reaffirms the growing importance given by the company in its focus areas of Software / Software Products / Business Process Outsourcing Services. The Consolidation will showcase, the Promoters, commitment to expand their horizons in BPO / Software and Software Products and enhance the value of all stakeholders.

Source : Equity Bulls

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