| Vishal Cotspin Ltd has announced that the Board of Directors of the Company at its meeting held on March 26, 2007, has unanimously approved the scheme of merger of the Company with Madanapalle Spinning Mills Ltd (MSM).
The merger shall be subject to necessary approvals and sanction of the Hon'ble Board for Industrial and Financial Reconstruction (BIFR) and provisions of Section 18(1)(c) and other applicable provisions of Sick Industrial Companies (Special Provisions) Act, 1985 and approval of Shareholders of the Company. Since the Company is under the Jurisdiction of the Hon'ble BIFR, the merger will be effected through the Hon'ble BIFR. The merger will help achieving scale, size, integration, and enhanced financial strength along with the flexibility to pursue future growth opportunities, both organic and inorganic, within and outside India. Merger Details 1. The appointed date of merger of the Company with MSM is March 31, 2007. 2. Under the terms of the proposed merger, the Company's shareholder will receive 1 share of MSM for every 5 shares held in the Company, on the reduced equity capital of the Company as per BIFR scheme. 3. The exchange ratio has been determined on the basis of a Valuation Report by Varma & Varma, Chartered Accountants, Bangalore. |
| Source: Equity Bulls |