City Union Bank seeks EGM approval for preferential issue to L&T

City Union Bank Ltd has announced that an Extra Ordinary General Meeting (EGM) of the members of the Bank will be held on December 29, 2006, to transact the following business:

1. Increase in the Authorised Capital of the Company i.e, Rs 30 Crores divided into 3,00,00,000 Equity Shares of Rs 10/- each be increased to Rs 100 Crores divided into 10,00,00,000 Equity Shares of Rs 10/- each and consequential alteration in Memorandum & Articles of Association of the Company.

2. For acquiring shares of the company by permitted foreign entities, registered FIIs and NRIs by purchase or acquisition on the recognized stock exchanges, subject to the condition that the individual holding of the above entities shall not exceed 5% of the paid up capital and the total holding of the Foreign entities together shall not exceed 26% of the paid up equity share capital of the Company or such other maximum limit as may be prescribed from time to time, subject to necessary provisions & approvals.

3. To create, offer, issue and allot in one or more tranch(es) at its sole discretion, up to a maximum of 26,65,000 fully paid-up equity shares of Rs 10/- each, constituting 10% (9.9943% to be exact) of the total post-issue paid up share capital of the Bank of Rs 10/- each at a price of Rs 169/- per share (face value of Rs 10/- per share and a premium of Rs 159/- per share) for cash on a preferential basis, which price is calculated in accordance with the Guidelines for Preferential Issues issued by SEBI to the following person:

Name of the Proposed Allottee: Larsen & Toubro Ltd

No. of shares Equity Shares proposed to be allotted: 26,65,000

Price per Share: Rs 169

Amount: Rs 45,03,85,000

Source : Equity Bulls

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