Datamatics Board Approves Scheme of Amalgamation, Demerger

Jun 25, 2008 12:00:00 PM

Mumbai, June 25, 2008: The Board of Directors of Datamatics Technologies Limited (BSE: 532528, NSE: "DATATECH") has unanimously approved at its meeting held on June 25, 2008 the scheme of amalgamation and demerger of Datamatics Limited and its associated Companies with Datamatics Technologies Limited

Further, in order to consolidate its domestic operations, the scheme also provides for amalgamation of its subsidiaries primarily engaged in domestic operations.

As per the scheme of amalgamation, shareholders of Datamatics Limited will receive 1.21 fully-paid up equity shares of Datamatics Technologies Limited of Rs.5/- each for every 1 fully paid up equity share of Rs.10/- each of Datamatics Limited.

The scheme of amalgamation is subject to the approval of shareholders, creditors and the High Court of Judicature, Bombay. The scheme of amalgamation will be operative with retrospective effect from April 1, 2008.

This Scheme is pursuant to the provisions of Sections 391 to 394 and other applicable provisions of the Companies Act, 1956 and subject to necessary approvals and sanctions of the Hon'ble High Court of Judicature at Mumbai.

The Transferee Companies and the Transferor Companies in the Scheme are all part of the same management.

“The proposed amalgamation and demerger would help position the company as a “one-stop-shop” offering end-to-end solutions spanning consulting, technology architectures and business process management, including both IT and ITeS services for global customers. It will also result in better control on operations, reduction of cost and better profitability,” said Rahul L. Kanodia, Vice Chairman and CEO, Datamatics Technologies Limited.

Enam Securities Private Limited and Deloitte Haskins & Sells were the Advisors to the Company on the above transaction.

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