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| Exchange Disseminated Time | TVS Electronics Ltd has informed BSE that the Board of Directors of the Company at its meeting held on August 13, 2007, inter alia, has considered the following proposal for restructuring the Company's businesses and unanimously approved the following transfers of investments as a composite package.
(a) 1,48,40,000 equity shares of Rs 10/- each representing 35.85% of the equity share capital of TVS Finance and Services Ltd at Rs 10/- per share for a total consideration of Rs 14.84 crores to TVS Investments Ltd, the Holding Company of TVS Electronics Ltd.
(a) 50,000 equity shares of Rs 10/- each representing 100% of the equity share capital of TVS-E Servicetec Ltd at Rs 10/- per share aggregating to Rs 0.05 crore to TVS Investment Ltd and the buyer would discharge the amount of Rs 5.50 crores due to the Company by the said TVS-E Servicetec Ltd pursuant to transfer of business.
(c) 50,000 equity shares of Rs 10/- each representing 100% of the equity share capital of Sravanaa Properties Ltd at Rs 10/- per share aggregating to Rs 0.05 crores to TVS Investments Ltd or to any of its wholly-owned subsidiaries and the buyer would discharge the amount of Rs 45.50 crores due to the Company by the said Sravanaa Properties Ltd.
2. The Board of Directors in the same meeting has also unanimously approved the following proposals:
a) Transfer of certain properties of the Company which are considered as non core assets to two separate wholly owned subsidiaries of the Company to be formed for the purpose at a price not less than the book value of the said properties.
b) The promoter Company - TVS Investments Ltd has consented to waive their right to proposed preferential offer of 36,00,000 warrants convertible into equal number of Equity Shares at Rs 48.50 per warrant which was approved by the shareholders of the Company in the Extraordinary General Meeting held on March 28, 2007. Since then, the Company has raised funds through sale of Contract manufacturing Services Business and also proposes to raise further funds through the transfer of the above said investments/assets. The funds that would be available would be sufficient to meet the long term fund requirements of the Company. The Board of Directors therefore, approved the proposal not to give effect to the preferential offer of warrants approved by the Shareholders on March 28, 2007. |
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