ETC Network Board approves Scheme of Amalgamation

ETC Network Ltd has announced that the Board of Directors of the Company at its meeting held August 06, 2007, has considered and approved the Scheme of Amalgamation of the Company or with Zee Interactive Learning Systems Ltd ('ZILS') and their respective shareholders. The salient features of the Scheme are as under:

1. The Scheme envisages the amalgamation of the Company with ZILS with effect from the Appointed date i.e. April 01, 2007

2. The Company is in the business of broadcasting television channels, ETC Music and ETC Punjabi. Its current issued and paid capital is 13,88,89,110 comprising 1,38,88,911 equity shares of Rs 10 each.

3. ZILS is one of the most diversified education companies. Its current issued and paid up capital is Rs 2,80,00,000 comprising of 28,00,000 equity shares of Rs 10 each.

4. The share exchange ratio will, be 1 equity share of Rs 10 each of ZILS for 2 equity shares of Rs 10/- each of the Company as recommended by the independent valuer M/s. Dalal & Shah, Chartered Accountants.

5. The Scheme is subject to requisite consents, approval of the shareholders, lenders and creditors of the companies, the Hon’ble High Court of judicature at Bombay and permissions or approvals of any other statutory or regulatory authorities, which by law may be necessary for the implementation of the Scheme.

6. Post amalgamation, name of the consolidated entity would be changed to 'ETC Networks Ltd' and the same would be listed on all the Stock Exchanges where the Company is currently listed.

ETC Network stock was trading at Rs.66, up by Rs.6.95 or 11.77%. The stock hit an intraday high of Rs.66.80 and low of Rs.60. The total traded quantity was 141880 compared to 2 week average of 30585.

Source : Equity Bulls

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