VSNL gets BoD OK for retail biz hive off

New Delhi, Mar 14 (UNI) Videsh Sanchar Nigam Ltd (VSNL) today received approval of the Board to hive off its retail business Undertakings (RBU) into its wholly-owned subsidiary DIL Internet Ltd, for a consideration of up to Rs 400 crore.

The demerger will be effective from March 1, 2007.

The RBU comprises broadband services undertakings and retail internet services undertakings along with all related assets and liabilities.

The demerger will be carried by way of a scheme of arrangement under the provisions of Sections 391 to 394 of the Companies Act of 1956.

The proposal is subject to receipt of necessary approvals from shareholders of the company.

UNI