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| Exchange Disseminated Time | Revathi Equipment Ltd has informed BSE that the meeting of BoD held today (June 30, 2004) have decided the following:
1. Atlas Copco India Ltd (AC) signed non-compete and non-solicitation agreement with Revathi Equipment Ltd (Revathi) pursuant to the sale of their holdings in Revathi to Utkal Investment Ltd
2. Revathi paid Rs 100 million as non-compete/non solicitation fee to AC on August 17, 2002.
3. AC contemplated the purchase of drilling solutions business from Ingersoll Rand.
4. A stay was obtained from Honourable High Court, Mumbai to restrain them from proceeding with the proposed acquisition.
5. A settlement has now been reached and AC has agreed to give compensation of Rs 150 million backed with a bank guarantee and the money will be received on completion of certain specified conditions.
The Company Board has been advised that AC has entered into agreement with Revathi's holding company M/s Utkal Investments Ltd to return part of the price of Rs 75 million paid by M/s Utkal Investments Ltd under Share Purchase agreement dated April 21, 2002 in settlement of the latter's claims on AC and for waiver of certain covenants, warranties under the aforesaid Share Purchase Agreement. This sum is payable on completion of certain specified conditions. |
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