Stock Report

Mascon Global Board approves acquisition, GDR Issue

Posted On : 2007-05-15 23:23:02( TIMEZONE : IST )

Mascon Global Ltd has announced that the Board of Directors of the Company at its meeting held on May 15, 2007, has considered and approved the following matters:

The Board in its meeting held on January 18, 2007 and March 12, 2007 considered and ‘In Principle’ approved the acquisition of 100% of the share capital of Target Company based in US and buying Specified Accounts and referred the matter to the Investment Committee for detailed evaluation as per the mandate of the Board. A note from the Investment Committee for acquisition of company and buying specified Accounts was placed before the Board. The Board after considering the valuation report from a Category I Merchant Banker and the recommendations of the Investment Committee approved the acquisition of Versatech Consulting Inc., USA and certain specified accounts at a valuation of US $ 38 million to be settled by a combination of own funds, debt and issue of GDRs.

a. Final Offering Circular in connection with the proposed GDR Issue.
After review, the Board considered and approved the Final Offering Circular in connection with the proposed GDR Issue upto US $ 20 Million, duly filed with the Luxembourg Stock Exchange (LSE). The Board approved the issue upto 10 million no. of GDRs (including issue of 6.5 million no of GDRs towards acquisition of overseas company and buying specified Accounts) priced not less than US $ 2 per GDR, which is in accordance with the pricing norms prescribed by the Ministry of Finance vide their notification dated August 31, 2005.

The Board further noted that the Lead Managers to the issue will open the issue soon. On closing of the issue, the GDR Committee will meet to consider and allot the underlying equity shares towards the said GDRs in favour of Deutsche Bank Trust Company Americas.

b. Other Documents.
The Board considered and approved various connected agreements like Placing Agreement, Depository Agreement, Legal opinions etc. forming part of the GDR Issue.

The Company has already received the In-Principle approval from the designated Stock Exchange, The Bombay Stock Exchange dated March 23, 2007 for the proposed GDR Issue.