EMPL, C2Sillion merger with Aftek gets nod

New Delhi, Dec 11: IT services provider Aftek Ltd today announced its board has approved the merger of C2Silicon Software Solutions Pvt Ltd and Elven Micro Circuits Pvt Ltd (EMPL) with the company.

According to the scheme of amalgamation, EMPL shareholders will be issued 123 shares of face value of Rs 2 of the company, for every 100 shares of EMPL of Rs 2 held.

''EMPL has created a unique niche in its business and the merger is aimed at exploiting operational and marketing synergies between EMPL and Aftek. It will also help the merged entity to compete effectively in the international market as well as to raise resources for future expansion,'' said Aftek Ltd Chairman and Managing Director Ranjit Dhuru.

EMPL is in the business of high-complexity chip network solutions while C2Sillion is a wholly-owned subsidiary of EMPL.

Aftek has a paid up share capital of Rs 17.33 crore. Post merger the company's equity capital will go up to Rs 18.56 crore.

The promoter shareholding in the company will go up to about 17 per cent.

EMPL has a paid up equity capital of one crore rupees and is expected to clock sales of six million dollars by the end of FY07.

Aftek Ltd formerly known as Aftek Infosys Ltd is engaged in activities like providing technology enabled products and IT services to a global client base.

The transaction is subject to approval of requisite majority of shareholders, lenders, creditors of the company, C2Silicon and EMPL, the Bombay High Court and the Karnataka High Court at Bangalore and other regulatory authorities.

Dalal and Shah, Chartered Accountants have worked out the Share Exchange Ratio. RSM Advisory Services Pte Ltd are advisors to the restructuring exercise.

UNI