ELECON ENGINEERING CO.LTD. - Clarifies on news item

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ELECON ENGINEERING CO.LTD. - Clarifies on news item

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04 Apr 2014
With reference to the news item appearing in the media titled "The Company is planning to sell its 49% stake in material handling business", Elecon Engineering Company Ltd has Clarified to BSE as under:<br/><br/>"In April, 2013 the Company has transferred its Material Handling Business by way of Slump Sale to its Subsidiary Company, i.e. Elecon EPC Projects Ltd. vide the Scheme of Arrangement duly approved and implemented by complying with various rules and regulations. One of the objectives of that Scheme was to raise fund at appropriate valuations for businesses.<br/><br/>In this connection, we refer to our notification to the Exchanges on April 01, 2013, where we stated "..the Company will actively explore various options for fund raising, including issuance or sale of eligible securities of the Company or its subsidiaries, to deleverage its balance sheet and fund further expansion plans of the Company, and thereby improving shareholders value."<br/><br/>We would like to further clarify that there are no ongoing active negotiations with any strategic investor to sell its shareholding/further issue of securities in our Material Handling Subsidiary Company. However, it is the Company's intention to deleverage balance sheet via fund raising through various options available in the market.<br/><br/>We would like to clarify with utmost emphasis that this should be viewed in light of one of our objectives of business restructuring as stated above which is made known from time to time through Stock Exchanges also.<br/><br/>The Company will keep the stock exchanges notified as per the requirements of the listing agreement, as and when definitive material developments take place in this.<br/><br/>Further, we confirm that we are not aware of any material information that has not been announced to the Exchanges which could explain the recent movement in share price."
View all announcements for ELECON ENGINEERING CO.LTD.	Source: BSE India

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