Jain Irrigstion to pump in $3mln in Mauritius subsidiary

New Delhi, Sep 4 (UNI) Jain Irrigation Systems today said its board has approved investment of 3 million dollars in the capital of its wholly-owned subsidiary in Mauritius, which in turn will invest the amount in the capital of US subsidiary, enabling it to repay its high cost debt.

The board also discussed the strategy related to consolidation of capacities in vegetable dehydration business at Jalgaon and Vadodara plants of the company, including an in-principle approval to merge Eurissko Agro Ltd and Orient Vegetexpo Ltd.

The vegetable dehydration business contributes 6-8 per cent of the revenues of the company at present. The merger is expected to provide operational, fiscal, strategic benefits to the company's shareholders.

The board also constituted a Board Sub-Committee to finalise the scheme and other terms of the mergers.

The share swap ratio for the merger has been fixed at two shares of the company for every 49 shares held by the shareholders of EAL.

The valuation and share swap ratio for the merger of Orient Vegetexpo Ltd (OVL) with the company and ratio has been fixed at seven shares of the company for every 53 shares held by the shareholders of the said OVL.

The members of the company are scheduled to meet on September 29, 2006, to finalise the matters.

UNI CS PKS VP1320