Shareholders nod merger of TVS Electronics with TVS eTechnology

In an Emergency General Meeting, the shareholders of TVS Electronics Limited have extended their approval for the scheme of merger with TVS eTechnology Limited. As per the scheme the shareholders of TVS Electronics would be allotted one equity share of the merged entity for every share held and the merged entity would get renamed as TVS Electronic Limited.

According to Gopal Srinivasan, Director TVS-E Limited, who chaired the shareholders meeting, "This merger is unique as the merged entity will leverage the best practices of the two companies, identify new marketing opportunities and is expected to bring big benefits for TVS-E. The synergies derived from the merger provide scope for economies of scale and reduction in operating and administrative costs."

Since both the companies belong to the TVS group of companies the amalgamation would combine the activities and operations in a single company providing synergistic linkages besides economies in costs by 
combining the total business functions and the related activities. 

The Transferee Company (TVS eTechnology), which is in the BPO space has identified other synergistic BPO area. "The eAppliances Business group has transformed itself from an IT Appliances to an IT Products and Solutions business, with its foray into transaction solutions for 'Heart Of India' applications. The eServices business group has evolved into a healthy Business Process Outsourcing unit in the Electronics Manufacturing Services area. The company aims to increase its profitability through products and services and shall scale-up through Global BPO," added
Srinivasan. 

At the EGM, 428 members were present by person and proxy, which accounted for 1,02,27,448 votes. Out of this 427 members aggregating to 1,02,27,348 votes, voted in favor of the resolution and one member with one hundred votes voted against the resolution. This represents 99.7 percent by number of persons and 99.9 percent by number of votes approval in favor of the merger.

With this shareholders' clearance the scheme would now be taken up for approval to the Madras high Court. The merger process is expected to be completed before September 2003

Cyber News Service