Mold Tek Technologies to demerge business into 2 separate entities

The Board of Directors of Mold Tek Technologies Ltd at its meeting held on May 07, 2007 has considered the following:

1. The Board approved an agreement to acquire the entire stock of M/s. Cross Roads Detailing Inc., an Indiana, USA based KPO Engineering and Detailing Company to effectively make it a 100% subsidiary of the Company post demerger.

The acquisition entails a graded earn-out/payout of USD 1.30 million to the existing shareholders of M/s. Cross Roads, Most of the present employees of Cross roads are expected to continue in employment.

2. In the year 06-07 the Company's KPO division has achieved 200% rise to reach about Rs 11.40 crores in revenue (unaudited) and the trend is likely to remain positive with this acquisition.

3. Managing Director Sri. JL Rao is confident to further accelerating the Company's KPO business with the synergy that the takeover entails.

4. The Board approved the employment of Mr. Ted Hulsman, Promoter and a US certified Professional Engineer as CEO to head Cross Roads Detailing Inc, in the US on agreed terms.

5. Proposed Scheme for the merger of M/s. Teck Men Tools Pvt Ltd, a plastics packaging enterprise, with the Company, was discussed and the stamps reviewed, with the purpose of speeding up all submissions relating to the matter.

6. The proposed Scheme of De-merger of Company into two separate entities viz. Reengineering KPO and Plastic Packaging, was reviewed for its status, with the purpose of accelerating all necessary submissions relating to the matter.

Source : Equity Bulls

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