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Our Bureau

Hyderabad , Aug. 4

FOUR SOFT Ltd plans to seek shareholders nod to increase the borrowing limit to Rs 60 crore and allow the management to invest about Rs 100 crore for possible acquisition of a European company.

After the company board meeting held here , the company has informed the BSE its plans to take up the issue of preferential allotment at its annual general meeting slated for August 27, along with ratification of Four Soft ESOP scheme.

The board proposals include increasing the borrowing limit to Rs 60 crore, increasing investment up to Rs 100 crore in acquisition of a European company and allotment of shares to India Growth Fund, GMKH Automation and Skywest.

The Hyderabad-based IT solutions provider informed the exchange that it has identified a company in Europe for acquisition and may pursue the same through its Dutch subsidiary. Efforts to contact the officials were in vain.

Based on Expression of Interest received from India Growth Fund (a unit scheme of Kotak SEAF India Fund), the company proposes to issue 39,49,447 equity shares on preferential basis at Rs 63.30 per share (Rs 5 face value plus Rs 58.30 premium) as per SEBI guidelines, aggregating Rs 25 crore. This Expression of Interest is subject to legal and financial due diligence process.

Further, the board proposes to issue 1,46,524 equity shares to GMKH Automation BV at Rs 63.30 per share (Rs 5 face value plus Rs 58.30 premium) aggregating Rs 0.92 crore towards part consideration for acquisition of shares of CargoMate International BV already completed in October 2004.

The company proposes to issue 2,16,884 equity shares to Skyvest International Ltd at Rs 63.30 per share aggregating Rs 1.37 crore towards part consideration for acquisition of shares of Comex Frontier Pte Ltd, completed in May 2005.

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