Result of Meeting

29 Aug 2007 15:18

REI Agro Limited29 August 2007 29th August, 2007 The General Manager The Manager (Listing),Department of Corporate Services, National Stock Exchange of India Ltd.Bombay Stock Exchange Limited, Exchange PlazaPhiroze Jeejeebhoy Towers, Bandra Kurla Complex, Bandra (E)Dalal Street, Mumbai - 400 001 Mumbai - 400 051 SUB: Outcome of the Board Meeting Dear Sir, This is to inform you that a meeting of the Board of Directors of REI AgroLimited (the "Company") held today and it was decided as under: The Board of Directors considered the proposal to transfer the retailundertaking of the Company i.e. the Company's business, activities andoperations pertaining to retail business of the Company as a going concern andby way of a demerger to REI Six Ten Retail Limited ("RSTRL") in considerationfor which RSTRL will issue shares and global depository receipts ("GDRs") to theshareholders and GDR holders, respectively, of the Company. The restructuringproposal to be implemented in terms of a scheme of arrangement under theprovisions of Sections 391-394 of the Companies Act, 1956, was discussed andapproved. The proposed scheme of arrangement provides that upon sanction, the demergerwill take effect from the appointed date i.e. August 25, 2007. ("AppointedDate"). The Board of Directors of the Company also approved the share entitlement ratioof 9 (Nine) equity share in RSTRL of Rs. 10 each credited as fully paid-up forevery 20 (Twenty) equity share of Rs. 10 each credited as fully paid-up held bysuch member in the Company. The scheme also envisages issue of 70,00,000 sharesby RSTRL to the company. The Board of Directors of the Company also approved that pursuant to the schemeof demerger, the paid up capital of the company shall be reduced by canceling asum of Rs. 4 from each paid up Equity share of Rs. 10 each and thereafterconsolidating 5(five) Equity Shares of Rs. 6/- each of the Company into 3(three)Equity Shares of Rs. 10/- each fully paid-up in the Company. The above proposals are subject to obtaining necessary approvals including thoseof Stock Exchanges under the Listing Agreement, shareholders, creditors, anyregulatory authorities and sanction of the proposed scheme by the Hon'ble HighCourt at Calcutta. The scheme of arrangement as shall be filed with the Stock Exchange as per theprovisions of the clause 24 of the Listing Agreement. Thanking you, Yours faithfullyFor REI Agro Limited Sd/-Mandan MishraCompany Secretary CC: London Stock Exchange Singapore Stock Exchange This information is provided by RNS The company news service from the London Stock Exchange