Eros International Media has received an approval for acquisition of 100% stake in Universal Powers Systems (UPSPL), subject to the approval of the shareholders of the company by postal ballot, applicable regulatory approvals and other closing conditions customary to transactions of this nature. The board of directors at their meeting held on February 13, 2015 have approved for the same.
The acquisition shall subject to regulatory approvals be for non-cash consideration, i.e., by issuance of new equity shares of the company to the promoters of UPSPL by way of a preferential allotment as per the applicable provisions of the Companies Act, 2013, the rules made there under, the provisions of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 and the Listing Agreements entered into with relevant stock exchanges.
The board also approved entering and execution of definitive agreements in this regard and sending of a postal ballot notice to the shareholders of the company to approve the proposed allotment of equity shares to the promoters of UPSPL on a preferential basis.
UPSPL is in the business of mobile Value Added Services that has billing integration in place with major telecom operators in India, trading by the name of ’TechZone’.
