Silverline Technologies updtaes on demerger of animation business

Silverline Technologies Ltd has announced that the Board of Directors of the Company at its meeting held on May 21, 2007, inter alia, has taken the following on record:

1. The Board of Directors with a view to streamline capital structure for optimum benefit of its stakeholders has undertaken the proposal of reduction of it's paid up equity share capital. The per share paid up value of Rs 10/- will be reduced to Rs 1/- per share paid up and simultaneously and immediately thereafter consolidation of ten (10) equity shares of Rs 1 each, into one Equity Share of Rs 10/- fully paid up.

The differential amount arising on the re-organization of the issued and subscribed equity shares as stated above shall be used along with the available share premium reserve for the purpose of adjusting a) the debit balance in the profit & loss account b) for the purpose of de-merger of animation division and c) for the purpose of creating capital reserve.

2. Reviewed the "de-merger related work progress" to be submitted to stock exchange for pre-approval and decided to furnish the documentation to exchange by May 28, 2007.

The Board has re-iterated that for every 100 shares held by shareholders prior to capital reduction 4 shares of Rs 10/- each will be issued to shareholders in Silverline Animation Technologies Ltd.

The Board of Directors opined that the above simultaneous exercise of De-merger, Capital Reduction and Consolidation / Re-Organization will pave the way for wealth maximization of the shareholders.

Source : Equity Bulls

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