Siemens Ltd to acquire 77% in iMetrex Technologies, to sell SVDO division

The Board of Directors of Siemens Ltd at its meeting held on April 23, 2007, inter alia, has taken the following decisions, subject to the receipt of all requisite consents and approvals of the Members and statutory and regulatory authorities:

1. Acquisition of 77% Stake in iMetrex Technologies Ltd., Chennai (ITL) and Carve Out of SBT Division of the Company into ITL.

(a) The BoD has decided to acquire 77% Equity stake of iMetrex Technologies Ltd., Chennai (ITL) from Mr. Anand Mecheri, Mr. Rajeev Mecheri & Mr. Avnish Gupta. The remaining 23% will be acquired over a period of time. Suitable agreement is being entered into with them for the purpose of acquiring these shares.

Consequent to the closing of the transaction, ITL will become a subsidiary of the Company and proposed to be named as Siemens Building Technologies Ltd.

ITL, with subsidiaries in Hong Kong, Singapore, UK and Ireland, has a staff strength of 620 and is engaged in the businesses of providing integrated Security, Fire Safety and Building Automation solutions and also runs successful R&D and manufacturing facilities.

(b) The BoD has also approved, the proposal for carve out by way of sale and transfer of 'Siemens Building Technologies Division' (SBT) of the Company, to ITL, with a view to improve SBT's strength and market position in India in the security business as well as to open an opportunity for the subsidiary Company to participate in the global security products business.

2. Sale and transfer of SVDO Division of the Company.

The BoD has also approved, in-principle, the proposal for the sale and transfer of the 'Siemens VDO Automotive Division' (SVDO Division), to a new 100% subsidiary of Siemens AG, Germany (SAG), to be incorporated in India for this purpose. This follows the announcement made by SAG in January 2007, to float an IPO of its Automotive Supply business in which SAG will hold a majority stake.

For the carve out of the SVDO Division, the BoD has also constituted a Committee of the Directors to finalise the mode of sale & transfer, valuation, price consideration, effective date of sale and transfer and to take all the decisions and steps, which are necessary and expedient for the implementation of the said decisions.

Source : Equity Bulls

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