The Hindu Business Line : Flextronics Software to seek shareholders' nod for delisting

THE board of Flextronics Software Systems has decided to call an Extraordinary General Meeting of shareholders to vote on the parent firm Flextronics' proposal to purchase all outstanding public shareholding in the company.

FSS' President and Managing Director, Mr Arun Kumar, after a meeting of the board in Gurgaon, said FSS would fix a date for the EGM in accordance with SEBI requirements.

"The next step is that a notice period of three weeks has to be given to the shareholders and we have to work on the logistics," he pointed out.

Mr Arun Kumar's comments come a day after Flextronics announced that it proposes to delist its India-based subsidiary — FSS — from both Bombay Stock Exchange and National Stock Exchange by purchasing all outstanding public shareholding in the company at a price of Rs 575 per share.

With total number of outstanding public and institutional shares at about 1.03 crore, the reverse book-build offer is valued at about Rs 597 crore, at the offer price. Flextronics currently holds 69.7 per cent of FSS (erstwhile Hughes Software Systems) through its wholly-owned subsidiary Flextronics Sales and Marketing Ltd, while the institutional investors hold 22.58 per cent stake, private corporate bodies 1.05 per cent stake, Indian public 6.06 per cent and NRIs/OCBs 0.12 per cent. The remaining is held by the Trust, directors and clearing members.

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