Usha International to revise scheme of arrangement

Usha International Ltd has announced that with regards to the Scheme of Amalgamation (Scheme) of Usha International Ltd (Transferor Company No 1) (UIL), Shriram Fuel Injection Industries Ltd (Transferor Company No 2) (SFIIL) with the Jay Engineering Works Ltd (Transferee Company) (JEW), the Board of Directors of the Company at its meeting held on October 04, 2007, has approved the modification of the said Scheme as the Business Valuation and determination of Share Exchange ratios in the Scheme were done on the basis of accounts of three Companies i.e. JEW, UIL & SFIIL as of March 31, 2006. Section 391 of the Companies Act requires latest accounts to be attached with the application for the Scheme. Since the audited accounts of all the three Companies for Y.E. March 31, 2007 are approved at their Annual General Meetings held on September 21, 2007, the SOA as already approved by the Board can not be filed in court and therefore needs to be amended on the basis of the accounts as of March 31, 2007.

Further the Board has also decided to include a provision in the Scheme to issue 40,00,000 Warrants on a preferential basis, to the promoters and entity / entities in the promoter group of the Transferor and / or Transferee Company or any new Promoters, of the value of Rs 30,00,00,000 with an option for subscribing to one Equity Shares of Rs 10 each per Warrant, by payment of an amount of Rs 75 each including an amount of Rs 65 each towards Share premium and on the terms and conditions as provided in the Scheme and as may be decided by the Board of Directors of the Transferee Company.

The revised Scheme is under preparation.

Source : Equity Bulls

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