Birla VXL divests stake in VXL Technologies, Masuzawa Punjab Silk, OCM India Ltd

Birla VXL Ltd has announced as under:

A. Pursuant to Clause C(1)(i) and (ii) of Part III of the Scheme of Arrangement, which has become effective from March 30, 2006:

i. The Company has divested its entire shareholding of 2,00,00,000 Equity Shares of Rs 10/- each fully paid up and 10,00,000 - 13.5% Cumulative Redeemable Non Convertible Preference Shares of Rs 100/- each fully paid up in VXL Technologies Ltd (VTL), a wholly owned Subsidiary of the Company on September 29, 2006. As a consequence, VTL has ceased to be a Subsidiary of the Company from September 29, 2006.

ii. The Company has divested its holding of 30,00,000 (60%) Equity Shares of Rs 10/- each in Masuzawa Punjab Silk Ltd (MPSL), a Subsidiary of the Company, on September 29, 2006. As a consequence, MPSL has ceased to be a Subsidiary of the Company from September 29, 2006.

B. Pursuant to Clause B(i) and (ii) of Part III of the Scheme of Arrangement and as approved by the Monitoring Committee of the Lenders and advised to the Company by Asset Reconstruction Company (India) Ltd., the Company has on September 29, 2006 entered into an agreement inter alia for sale of its entire holding of 1,33,16,363 Equity Shares of Rs 10/- each (100%) in OCM India Ltd. (OIL), a wholly owned Subsidiary of the Company. The agreement is subject to compliance of certain terms and condition and upon becoming effective, OIL will cease to be a Subsidiary of the Company.

Source : Equity Bulls

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