The Hindu Business Line : MosChip EGM for nod on Verasity buy-out

FOLLOWING an Andhra Pradesh High Court directive, MosChip Semiconductor Technology Ltd, a Hyderabad-based fabless semiconductor company, has issued a notice to shareholders convening a meeting on April 28, to take their consent for scheme of amalgamation of MosChip with the US-based Verasity Technologies Inc.

The company will seek approval to hike the authorised capital.

The Chief Financial Officer of MosChip, Mr Vivek Bhargava, told Business Line that following the recent decision to acquire and merge the Santa Clara-based Verasity Technologies Inc, a system on chip (SoC) semiconductor company, the MosChip board has convened this extraordinary general meeting (EGM) of the shareholders on a court directive to seek their nod for the proposed amalgamation of the two companies.

During the meeting, MosChip will seek shareholders permission to hike the authorised share capital from Rs 26 crore to Rs 35 crore, Mr Bhargava said

Following this development, the MosChip board will seek shareholders nod to allot 61,77,778 equity shares of the face value of Rs 10 each at a premium of Rs 21 per share to Verasity. The exchange ratio of one share to one share of respective companies was arrived at based on valuation undertaken by external valuer and accounting firm, PriceWaterhouse Coopers.

Earlier in March, MosChip and Verasity had announced the proposed acquisition of Verasity to bring in synergies between the two companies. Following this move and allotment of shares, the equity of MosChip will increase from Rs 23.22 crore to Rs 29.40 crore.

On an application by MosChip, the Court passed an order on March 28 directing the MosChip board to convene a meeting of the shareholders and seek their nod for amalgamation of the two companies. .

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