Silverline Technologies to consider demerger of Animation division

Silverline Technologies Ltd has announced that a meeting of the Board of Directors of the Company will be held on January 10, 2007, inter alia, to consider the following:

1. De-merger of its Animation Division into a Separate Entity and engage the services of M/s. Firstcall India Equity Advisors Pvt Ltd, as an Advisor for the De-merger Transaction.

Also to discuss the scope of the engagement of advisor in terms of valuation exercise of de-merged entity associated statutory formalities to be fulfilled and the number of shares that the existing shareholders can get in the de-merged Animation Entity and the Complete De-merger Scheme.

2. To decide on the Capital Reduction, to enhance the fundamental strength of the Company and to entrust the job of capital reduction to M/s. Rajesh Shah & Co, Advocates, Mumbai & M/s. Firstcall India Equity Advisors Pvt Ltd.

The scope of capital reduction includes reduction / consolidation of equity by adjusting the debit balance in the profit and loss account and creating capital reserve, which will enhance the book value of the share by taking the interests of large shareholder base of the Company into consideration. The reduction of equity capital would make the task of servicing easier and manageable, while it gives raise to increased fundamental strength in terms of increased Earnings Per Share. The capital structure will also be conducive to future capital expansion and long-term strategy of inorganic growth through acquisitions, which, in turn, will create value proposition for the existing shareholder.

Source : Equity Bulls

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