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Thursday, Apr 22, 2004

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CESC shareholders force poll on proposed merger of Balagarh Power, CESCON

Our Bureau

Kolkata , April 21

THE shareholders of CESC Ltd at an extraordinary general meeting convened here on Wednesday for approving the proposed Scheme of Arrangement for amalgamation of Balagarh Power Company Ltd (BPCL) and CESCON Ltd with CESC (transferee company), and also issue of rights shares (82,69,788 new equity shares of Rs 10 each at a premium of Rs 50 per share to existing shareholders) have forced a poll on the issue.

The Vice-Chairman of CESC, Mr Sanjiv Goenka, announced that the results of the poll would be made known on Thursday at the Princep Street office of CESC between 10.00 a.m. and 12.00 noon. The rights issue is in the proportion of one rights share for every eight registered equity shares.

The ordinary resolution also pertained to the exercise of restructuring the company's debt due to the Indian lenders. The debt package also includes UCO Bank's refinance loan. The said resolution is for obtaining the approval of members in terms of Section 293(1)(a) of the Companies Act, 1956, to enable the company to create a mortgage and/or charge to secure the said financial assistance, as contained in the resolution.

BPCL was incorporated in 1994 for the purpose of setting up a 2 into 250 MW thermal power station at Balagarh near Kolkata.

The project has since been shelved. CESCON, a 100 per cent subsidiary of CESC, was set up in 1990, and has been engaged mainly in power consultancy and contracting business. Both Balagarh Power and CESCON, the transferor companies, are wholly owned subsidiaries of CESC.

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