MUMBAI: The boards of ETC Networks Ltd and Econnect India Ltd (EIL) have approved the share swap ratio for the merger of the two companies in their board meetings held on 2 January 2004, ETC informed the Bombay Stock Exchange.
 

Earlier, in a meeting held on 15 December 2003, the Zee Telefilms Ltd (ZTL) board had approved the merger of ETC Networks with another ZTL subsidiary Econnect India Ltd (EIL).

Under the approved share swap arrangement, the ETC shareholders will be entitled to three Econnect equity shares of Rs 10 each fully paid up against every ETC equity share of Rs 10 each fully paid up held by them.

However, to rationalise the resultant share capital of the merged entity EIL, the share capital of EIL will be re-organised by consolidating three shares of Rs 10 each fully paid up into one equity share of Rs 10 each fully paid up.

This means that once the amalgamation and capital restructuring of ETC and EIL are completed, the shareholders of ETC would be issued and allotted one Econnect equity share of Rs 10 each fully paid up for every equity share of Rs 10 each fully paid up held by them, that is, in the ratio of 1:1.

The name of the merged entity would then be changed to ETC Networks Ltd. The merger process is expected to be completed within a period of four-five months.

The proposed merger is subject to the approval of shareholders of the company and the Hon'ble High Courts of Judicature at Bombay and Delhi.