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LETTER OF OFFERTHIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION
This leer ofoffer (Leer of Offer) is sent to you as a shareholder(s) of Everonn Educaton Limited (Shareholders). If you require any clarificatons about the acton to be taken, you may
consult your stock broker or investment consultant or the Manager/Registrar to the Offer. In case you have recently sold your shares in Everonn Educaton Limited, please hand over this Leer of
Offer and the accompanying Form of Acceptance cum Acknowledgement, Form of Withdrawal and Transfer Deeds to the member of the stock exchange through whom the said sale was effected.
CASH OFFER BY
SKIL Infrastructure Limited (the Acquirer)Registered Office: SKIL House, 209 Bank Street Cross Lane, Fort, Mumbai 400 02 3, Maharashtra, India, (Tel. No. 022 6619 9000, Fax No. 022 2269 6023)
along with
SKIL Knowledge Cites Private LimitedRegistered Office: 13/14, Khetan Bhavan, 198, Jamshedji Tata Road, Churchgate, Mumbai 400 020, Maharashtra, India, (Tel. No. 022 6715 8000, Fax No. 022 6715 8 099)
(referred to as the person actng in concert (PAC))
TO ACQUIRE UP TO 3,944,080 FULLY PAID UP EQUITY SHARES OF FACE VALUE OF RS 10 REPRESENTING 20% OF THE EMERGING VOTING CAPITAL (OFFER) OF
Everonn Educaton Limited (Target Company)Registered office: No. 82, IV Avenue, Ashok Nagar, Chennai 600 083, Tel : 044-2371 8202-03/ 2471 5356-59; Facsimile: 044-2471 7845
AT Rs. 587.01/- (Rupeesfive hundred eighty seven and one paisa only) PER FULLY PAID UP EQUITY SHARE OF FACE VALUE OF RS 10 (SHARE) PURSUANT TO THE SECURITIES AND EXCHANGE
BOARD OF INDIA (SUBSTANTIAL ACQUISITION OF SHARES AND TAKEOVERS) REGULATIONS, 1997 AND SUBSEQUENT AMENDMENTS THERETO (THE SEBI (SAST) REGULATIONS)
ATTENTION:
1. This Offer is being made by the Acquirer along with the PAC pursuant to and in accordance with the provisions of Regulatons 10 and 12 and other applicable provisions of the SEBI(SAST) Regulatons.
2. This Offer is not a conditonal offer and is not subject to a minimum level of acceptance by the Shareholders of the Target Company.3. This Offer is not a compettve bid.4. The Offer is subject to the receipt of the approval from the Reserve Bank of India (RBI) under the Foreign Exchange Management Act, 1999 and/or the rules and regulatons
framed thereunder for acquiring shares from Non-Resident Indians who validly tender their shares under this Offer. The Acquirer and the PAC have filed an applicaton on
September 14, 2010 with RBI for approval to acquire Shares from non-resident persons pursuant to the O ffer. Following the applicaton the Acquirer and PAC have responded to
certain queries raised by the RBI. The approval is presently awaited. To the best of knowledge and belief of the Acquirer and PAC, as of the date of this Leer of Offer, there are no
other statutory approvals required. The Offer would be subject to all other statutory approvals that may become applicable at a later date before the closure of the Offer.
5. Shareholders who have accepted the Offer by tendering the requisite documents, in accordance with the terms of the Public Announcement / Le er of Offer, can withdraw thesame up to 3 working days prior to the date of closure of the Offer. Requests for such withdrawals should reach the Registrar to the Offer or their collecton centres on or before
4 pm on Wednesday, 24 November, 2010.
6. Acquirer and PAC are permied to increase the Offer Price and/ or the number of Shares proposed to be acquired by the Acquirer and/ or PAC. Such upward revision made inaccordance with Regulaton 26 of the SEBI (SAST) Regulatons will not be later than Thursday, 18 November, 2010, which is 7 working days prior to the date of closure of the Offer(i.e. Saturday, 27 November, 2010). If the Offer Price is revised upward, such revised price will be payable to all the Shareholders of the Target Company who have accepted the
Offer and submied their Shares at any tme during the Offer period to the extent their Shares have been verified and accepted by the Acquirer and/or PAC. In the event of such
revision a public announcement will be made in the same newspapers where the original Public Announcement appeared (mentoned in paragraph 2.2.1 of this Leer ofOffer).
7. The Acquirer and PAC may withdraw the Offer in accordance with the conditons specified in Regulaton 27 of the SEBI (SAST) Regulatons. In the event of such withdrawal the samewould be notfied by way of a public announcement in the same newspapers in which the Public Announcement was published.
8. There has been no compettve bid.9. If there is a compettve bid(s): (i) the public offers under all the subsistng bids shall close on the same date; and (ii) as the Offer Price cannot be revised during 7 working days
prior to the closing date of the offers/bids, it would, therefore, be in the interest of Shareholders to wait tll the commencement of that period to know the final offer price of
each bid and tender their acceptance accordingly.
10. The Public Announcement, this Leer of Offer, Form of Acceptance cum Acknowledgment and Form of Withdrawal is also available on the website of the Securi tes andExchange Board of India (SEBI) www.sebi.gov.in . A copy of the Form of Acceptance cum Acknowledgment can also be obtained from the Registrar to the Offer commencing on
the date of the dispatch of the Leer of Offer. All future correspondence, if any, should be addressed to the Registrar to the Offer at the address mentoned below.
MANAGER TO THE OFFER
Edelweiss Capital Limited14
thFloor, Express Towers
Nariman Point, Mumbai 400 021, India
Tel: +9122 4086 3535; Fax: +9122 4086 3610
E-mail:[email protected]
SEBI Regn: INM0000010650
Contact Person: Ms. Dipt Samant/Ms. Neetu Ranka
REGISTRAR TO THE OFFER
Plot nos. 17-24, Vi
al Rao NagarMadhapur, Hyderabad 500 081.
Tel: (91)-40-44655000/ 23420815-23
Fax: +91-040-2343 1551 | E-mail: [email protected] |Website: hp://karisma.karvy.com
SEBI Registraton Number: INR000000221
Contact Person: Mr. Murali Krishna
OFFER OPENING DATE: Monday, November 08, 2010 OFFER CLOSING DATE: Saturday, November 27, 2010
Original Schedule Revised ScheduleActvity
Date Day Date Day
Public Announcement Date 22 July, 2010 Thursday 22 July, 2010 Thursday
Specified Date* 30 July, 2010 Friday 30 July, 2010 Friday
Last date for compettve bid 12 August, 2010 Thursday 12 August, 2010 Thursday
Date by which Leer of Offer will be dispatched to the shareholders 31 August, 2010 Tuesday 04 November, 2010 Thursday
Offer Opening Date 09 September, 2010 Thursday 08 November, 2010 Monday
Last date for revising the Offer Price/ number of shares 17 September, 2010 Friday 18 November, 2010 Thursday
Last date for withdrawing acceptances from the Offer by the
shareholder
23 September, 2010 Thursday 24 November, 2010 Wednesday
Offer Closing Date 28 September, 2010 Tuesday 27 November, 2010 Saturday
Last date of communicatng of rejecton/ acceptance and payment of
consideraton for accepted tenders/return of unaccepted shares
12 October, 2010 Tuesday 11 December, 2010 Saturday
* Specified Date is only for the purpose of determining the names of the Shareholders of the Target Company as on such date to whom this Leer of Offer would be sent. All Shareholders (registered
or unregistered), except the Acquirer and PAC, who own the Shares of the Target Company are eligible to partcipate in the Offer anytme before the closure of the Offer.
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1 RISKFACTORSI. RiskFactorsrelatingtotheAcquirerandPAC
(i) TheAcquirerandPAC cannotprovideanyassurancewithrespecttothe market price ofthe Sharesof the
TargetCompanybefore,duringoraftertheOfferandeachofthemexpresslydisclaimanyresponsibilityor
obligationofanykind(exceptasrequiredbyapplicablelaw)withrespecttoanydecisionbyanyShareholder
onwhethertoparticipateornottoparticipateintheOffer.
(ii) TheAcquirerandPACmakenoassurancewithrespecttothecontinuationofthepasttrendinthefinancial
performanceoftheTargetCompany.
II. RiskFactorsassociatedwiththeOffer(i) TheOffer issubjecttotheAcquirerandPACobtainingallnecessaryapprovals includingtheapprovalfrom
RBIundertheForeignExchange ManagementAct,1999,asamendedfromtimetotimeandtherulesand
regulationsmadethereunder.TheAcquirerandthePAChavefiled anapplicationonSeptember14, 2010
with RBI for approval to acquire Shares from nonresident persons pursuant to the Offer. Following the
application the Acquirer and PAC have responded to certain queries raised by the RBI. The approval is
presentlyawaited.
(ii) Intheeventofregulatoryapprovalsnotbeingreceivedinatimelymannerorthereisanylitigation leading
to
a
stay
on
the
Offer,
or
SEBI
instructing
that
the
Offer
should
not
proceed,
the
Offer
process
may
be
delayedbeyondthescheduleindicatedinthisLetterofOffer.Consequently,thepaymentofconsiderationto
theShareholdersoftheTargetCompanywhoseShareshavebeenacceptedintheOfferaswellasthereturn
oftheSharesnotacceptedbytheAcquirerand/orPACmaybedelayed.
(iii) Incaseofdelay inreceiptofthestatutoryapproval(s)SEBIhasthepowertograntanextensionoftimeto
theAcquirerand/orPACforpaymentofconsiderationtotheShareholdersoftheTargetCompany,subject
totheAcquirerand/orPACagreeingtopay interestforthedelayedperiodasdirectedbySEBI intermsof
Regulation22(12)oftheSEBI(SAST)Regulations.
(iv) Further, Shareholders should note that after the last date of withdrawal i.e. Wednesday, 24 November,
2010, Shareholders who have lodged their Shares would not be able to withdraw their Shares even if the
acceptanceof
Shares
under
the
Offer
and
dispatch
of
consideration
gets
delayed.
The
tendered
Shares
and
documents would be held by the Registrar to the Offer, till the process of acceptance of tenders and the
paymentofconsiderationiscompleted.TheShareholderswillnotbeabletotradeinsuchShareswhichare
inthecustodyoftheRegistrartotheOffer.
(v) In the event of oversubscription in the Offer, the acceptance of the Shares tendered will be on a
proportionate basis in accordance with Regulation 21(6) of the SEBI (SAST) Regulations and will be
contingentonthe levelofsubscriptionandhencethere isnocertaintythatalltheSharestenderedbythe
ShareholdersintheOfferwillbeaccepted.
(vi) TheAcquirer,PACandtheManagertotheOfferacceptnoresponsibilityforthestatementsmadeotherwise
thaninthePublicAnnouncementorthisLetterofOfferorintheadvertisementoranymaterialsissuedbyor
atthe
instance
of
the
Acquirer,
PAC
and
the
Manger
to
the
Offer,
and
any
person
placing
reliance
on
any
othersourceofinformationwouldbedoingsoatitsownrisk.
III. Risksrelatedtothetransaction(i) TheOfferissubjecttocompletionrisksaswouldbeapplicabletosimilartransactions.
(ii) The transaction is subject to the terms of the Investment Agreement (as defined below) entered into
betweentheTargetCompany,theAcquirerandpromotersoftheTargetCompany.Inaccordancewiththe
InvestmentAgreement,thetransactionshallbecompleteduponfulfilmentofcertainconditionsprecedent
agreedbetweenthepartiestotheInvestmentAgreement.
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TheriskfactorssetforthabovearenotintendedtocoveracompleteanalysisofallrisksasperceivedinrelationtotheOffer
orinassociationwiththeAcquirerandPAC,butareonlyindicative.Theydonotrelatetothepresentorfuturebusinessor
operations of the Target Company or any other related matters, and are neither exhaustive nor intended to constitute a
complete analysisoftherisks involved in the participationbyaShareholder intheOffer. TheShareholders are advisedto
consulttheirstockbroker,investmentconsultantortaxadvisor,ifany,forfurtherriskswithrespecttotheirparticipationin
theOffer
CURRENCYOFPRESENTATION
InthisLetterofOffer,allreferencestoINRaretotheIndianNationalRupees.
InthisLetterofOffer,anydiscrepancyinanytablebetweenthetotalandsumsofamountslistedareduetoroundingoff.
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INDEX
Sr.
No.Subject Page
1. DisclaimerClause 3
2. DetailsoftheOffer 3
3. BackgroundoftheAcquirerandPAC 9
4. OptionintermsofRegulation21(2) 31
5. BackgroundoftheTargetCompany 31
6. OfferPriceandFinancialArrangements 44
7. Termsand
Conditions
of
the
Offer
49
8. ProcedureforacceptanceandsettlementoftheOffer 52
9. Documentsforinspection 61
10. Declaration 63
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DEFINITIONS
UnlessthecontextotherwiseindicatesorrequiresinLetterofOffer,thefollowingtermshave
themeaningsgivenbelow.
Acquirer SKILInfrastructureLimited,acompanyregisteredunderthe
CompaniesAct,
1956
Board BoardofdirectorsoftheTargetCompany
Act CompaniesAct,1956
BSE BombayStockExchangeLimited
CDSL CentralDepositaryServices(India)Limited
DraftLetterofOffer Draftletterofofferdated4August2010filedwithSEBI
DC DirectCredit
DP DepositoryParticipant
NECS NationalElectronicClearingServices
EmergingVoting
Capital
Shallhavethemeaningassignedtoitinparagraph5.6
EscrowAccount Shallhavethemeaningassignedtoitinparagraph6.2.2
OfferEscrow
AgreementShall
have
the
meaning
assigned
to
it
in
paragraph
6.2.2
FEMA ForeignExchangeManagementAct,1999
FormofAcceptance
/FOA
FormofAcceptancecumAcknowledgement
Investment
Agreement
Investment agreement dated 21 July, 2010 and amendment
agreement dated 29 October, 2010 to the investment
agreement entered into between the Acquirer, the Target
Company and its promoters and promoter group to issue and
allot to the Acquirer 4,000,000 optionally convertible
debentures having a face value of Rs.520.87/ each, on a
preferentialallotmentbasis.
Letterof
Offer
This
Letter
of
Offer
dated
29
October,
2010
ListingAgreements ThelistingagreemententeredintowithNSEandBSE,bythe
TargetCompany.
Manager/Manager
totheOffer/
MerchantBanker
EdelweissCapitalLimited
NEFT NationalElectronicFundsTransfer
NSDL NationalSecuritiesDepositoryLimited
NSE NationalStockExchangeofIndiaLimited
NRI NonResidentIndians
OCB OverseasCorporateBodies
OCDs 4,000,000optionallyconvertibledebentureshavingafacevalue
ofRs.520.87/
each
issued
on
preferential
basis,
pursuant
to
InvestmentAgreementdated21July,2010
Offer This mandatory offer being made by the Acquirer along with
PACtoacquireupto3,944,080Shares,representingupto20%
oftheEmergingVotingCapitaloftheTargetCompanyataprice
ofRs.587.01/ (Rupeesfivehundredeightysevenandonepaisa
only) perfully paid upShare,payable incash as setout inthis
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LetterofOffer
OfferPrice Rs. 587.01/ (Rupees five hundred eighty seven and one paisa
only) per fully paid up Share of face value of Rs. 10 each in
termsofRegulation20 oftheSEBI(SAST)Regulations
OfferShares Up to 3,944,080 fully paid up Shares of Rs. 10/ each,
representing 20% of the Emerging Voting Capital of the Target
Company
to
be
acquired
from
the
public
Shareholders
of
theTargetCompanyattheOfferPrice,payableincash
OMR OmaniRial
PAC SKIL Knowledge Cities Private Limited, a company registered
undertheCompaniesAct,1956
Personseligibleto
participateinOffer
AllShareholders(exceptthePACandpartiestotheInvestment
Agreement), whose names appear in the register of
Shareholders on the Specified Date and also persons who own
SharesanytimepriortotheclosureoftheOffer,whetherornot
they are registered Shareholders, are eligible to participate in
theOffer
Preferential
Allotment
Preferential allotment of the OCDs of the face value of Rs.
520.87/
each,for
cash
at
the
price
of
Rs.
520.87
per
OCD,
to
theAcquirer
Public
Announcement/
PA
Public Announcement as appeared in the newspapers on 22
July 2010 made by the Manager to the Offer on behalf of the
AcquirerandPACwhichwaspublishedintheFinancialExpress,
Jansatta,MakkalKuralandNavshakti
RBI ReserveBankofIndia
Registrar/Registrar
totheOffer
KarvyComputersharePrivateLimited
RTGS RealTimeGrossSettlement
SEBI SecuritiesandExchangeBoardofIndia
SEBI(SAST)
Regulations
Securities and Exchange Board of India (Substantial Acquisition
of
Shares
and
Takeovers)
Regulations,
1997,
and
subsequent
amendmentsthereto
SEBIAct SecuritiesandExchangeBoardofIndiaAct,1992
SGD SingaporeDollar
Share(s) Fully paid up equity share(s) of the Target Company, having a
facevalueofRs.10/ each
Shareholder(s) Allowners(registeredorunregistered)ofShares
SpecifiedDate Friday,30July2010
TargetCompany EveronnEducationLimited
TCC TaxClearanceCertificate
AlltheinformationunlessotherwisespecificallystatedinthisLetterofOfferareuptoandasof
dateof
Public
Announcement.
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1 DISCLAIMERASREQUIRED,ACOPYOFTHEDRAFTLETTEROFOFFERHASBEENSUBMITTEDTOSEBI.ITISTO
BE DISTINCTLY UNDERSTOOD THAT FILING OF THE DRAFT LETTER OF OFFER WITH SEBI
SHOULDNOTINANYWAYBEDEEMEDORCONSTRUEDTHATTHESAMEHASBEENCLEARED,
VETTEDOR
APPROVED
BY
SEBI.
THE
DRAFT
LETTER
OF
OFFER
HAS
BEEN
SUBMITTED
TO
SEBI
FORALIMITEDPURPOSEOFOVERSEEINGWHETHERTHEDISCLOSURESCONTAINEDTHEREIN
AREGENERALLYADEQUATEANDARE INCONFORMITYWITHTHESEBI (SAST)REGULATIONS.
THISREQUIREMENTISTOFACILITATETHESHAREHOLDERSOFEVERONNEDUCATIONLIMITED
TOTAKEAN INFORMEDDECISIONWITHREGARDTOTHEOFFER.SEBIDOESNOTTAKEANY
RESPONSIBILITY EITHER FOR FINANCIAL SOUNDNESS OF THE ACQUIRER OR PAC OR THE
TARGETCOMPANYWHOSESHARES/CONTROLAREPROPOSEDTOBEACQUIREDORFORTHE
CORRECTNESSOFTHESTATEMENTSMADEOROPINIONSEXPRESSEDINTHELETTEROFOFFER.
IT SHOULD ALSO BE CLEARLY UNDERSTOOD THAT WHILE THE ACQUIRER AND PAC ARE
PRIMARILY RESPONSIBLE FOR THE CORRECTNESS, ADEQUACY AND DISCLOSURE OF ALL
RELEVANT INFORMATION IN THIS LETTER OF OFFER, THE MANAGER TO THE OFFER IS
EXPECTED TO EXERCISE DUE DILIGENCE TO ENSURE THAT THE ACQUIRER AND PAC DULY
DISCHARGES
THEIR
RESPONSIBILITIES
ADEQUATELY.
IN
THIS
BEHALF,
AND
TOWARDS
THIS
PURPOSE, THEMANAGER EDELWEISS CAPITAL LIMITED HAS SUBMITTED A DUEDILIGENCE
CERTIFICATE DATED 4 AUGUST, 2010 TO SEBI IN ACCORDANCE WITH THE SEBI (SAST)
REGULATIONS. THE FILINGOF THE LETTEROFOFFERDOESNOT, HOWEVER,ABSOLVE THE
ACQUIRERANDPACFROMTHEREQUIREMENTOFOBTAININGSUCHSTATUTORYCLEARANCES
ASMAYBEREQUIREDFORTHEPURPOSEOFTHEOFFER.
2 DETAILSOFTHEOFFER2.1 BackgroundtotheOffer
2.1.1 TheAcquirertothisopenoffer(Offer)isSKILInfrastructureLimitedandthePACto
this Offer is SKIL Knowledge Cities Private Limited. The Offer is being made under
Regulations10and12oftheSEBI(SAST)Regulationspursuanttothefollowing:
a) TheAcquirerhasenteredintoaninvestmentagreementdated21July,2010andamendment agreement dated October 29, 2010 (together hereinafter referred
toasInvestmentAgreement)withtheTargetCompanyandcertainpromoters
andpromotergroupoftheTargetCompanytosubscribeto40,00,000optionally
convertible debentures having a face value of Rs.520.87/ each (OCDs) on a
preferential allotment basis, subject to receipt of requisite approvals and
fulfillment of conditions precedent to closing set forth in the Investment
Agreement. Assuming full conversion of the OCDs, the Acquirer will acquire
4,000,000 Shares at Rs. 520.87/ each of the Target Company (Shares)
representing20.28%oftheEmergingVotingCapital(ascalculated inparagraph
5.6of
this
Letter
of
Offer)
of
the
Target
Company,
at
the
price
of
Rs.520.87/
(Rupeesfivehundredtwentyandeightysevenpaiseonly)perShareaggregating
to Rs.208,34,80,000/ (Rupees Two hundred eight crores thirty four lacs and
eighty thousand only). The OCDs shall necessarily be redeemed or converted
intoSharesatanytimepriortotheexpiryof15(fifteen)daysfromthedateof
closure of Offer in accordance with Regulation 22(5) of the SEBI (SAST)
Regulations.
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b) AsperthetermsoftheInvestmentAgreement,theAcquirershallalsobecomeacopromoter(alongwiththeexistingpromoters)oftheTargetCompanyhaving
certain management and other rights resulting into control over the Target
Company.
2.1.2 In view of the above stated intention of the Acquirer to (i) acquire upto 40,00,000
SharesoftheTargetCompany(representing20.28%oftheEmergingVotingCapital
of
the
Target
Company)
assuming
full
conversion
of
the
OCDs
as
described
in
paragraph5.6above; and (ii) acquire controlpursuanttocertainmanagementand
control rights conferred under the Investment Agreement and as described in
paragraph 2.1.1 above, there would be a substantial acquisition of shares and
changeincontroloftheTargetCompany.HencethepresentOfferisbeingmadeby
theAcquirerunderRegulations10and12oftheSEBI(SAST)Regulations.
2.1.3 TheboardofdirectorsoftheTargetCompany(Board)intheirmeetingheldon19
July,2010dulyauthorisedthepreferentialallotmentoftheOCDsofthefacevalue
of Rs. 520.87/ each for cash at the price of Rs. 520.87 per OCD, to the Acquirer
(Preferential Allotment). Shareholders of the Target Company at the Extra
OrdinaryGeneralMeetingheldonAugust18,2010haveapprovedthePreferential
Allotmentto
the
Acquirer
in
accordance
with
the
provisions
of
the
Section
81(1A)
of
theCompaniesAct,1956andotherapplicableprovisions.ThePreferentialAllotment
shall be in accordance with the provisions of, amongst others, Securities and
ExchangeBoardofIndia(IssueofCapitalandDisclosureRequirements)Regulations,
2009 (SEBI ICDRRegulations). The Board of the Target Company in its meeting
heldonAugust31,2010allottedtheOCDinfavouroftheAcquirer.
2.1.4 The Acquirer and PAC hereby make this Offer to the Shareholders of the Target
Company(otherthanthePACandpartiestotheInvestmentAgreement)toacquire
up to 3,944,080 Shares of the Target Company of the face value of Rs 10/ each
being 20% of the Emerging Voting Capital of the Target Company at a price of Rs.
587.01/ (Rupees five hundred eighty seven and one paisa only) per Share (Offer
Price)payable
in
cash,
in accordance
with
the
SEBI
(SAST)
Regulations
and
subject
to the terms and conditions mentioned in the Public Announcement and in this
letterofofferthatwillbecirculatedtotheShareholdersinaccordancewiththeSEBI
(SAST)Regulations(theLetterofOffer).
2.1.5 ThedetailsofAcquirer,TargetCompanyandcertainpromotersandpromotergroup
of the Target Company, being the parties to the Investment Agreement are as
follows:
NameofParty Nature
EveronnEducationLimited TargetCompany
SKILInfrastructureLimited Investor/Copromoter/Acquirer
i.Sarvotham
P
ii.KishoreP
iii.JayaPadamanabhan
iv.PKPadmanabhan
v.CelebrateIndiaTourismLimited
vi.KeerthiKishore
vii.JansiKishore
Promotersand
promoter
group
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2.1.6 SalientfeaturesoftheInvestmentAgreementareasfollows:
a) The Acquirer has agreed to subscribe to the OCDs. The OCDs shall, at the
soleoptionoftheAcquirer,beconvertibleintoSharesatanytimeduringthe
conversionperiod.TheOCDswillbeconvertedintosuchnumberofShares,
such that post the conversion the aggregate shareholding of the Acquirer
and/or
PAC
(including
all
Shares
acquired
bythe
Acquirer
and/or
the
PAC
pursuant to this Offer) does not exceed 40,00,000 Shares which will
constitute20.28%oftheEmergingVotingCapital.
b) TheAcquirersobligationtosubscribetotheOCDs issubjecttofulfillment/
satisfaction of certain conditions precedent set forth in the Investment
Agreement.
c) The parties have agreed to deposit subscription consideration in the
designatedbankaccount,whichshallbeanolienaccount.
d) The Target Company has agreed and undertaken not to utilize the
subscription consideration or any part thereof until conversion and/or
redemptionofalloftheOCDs.
e) The Target Company has agreed and undertaken to extend such co
operationasmayberequiredbytheAcquirer, includingbutnot limitedto,
provisionofsuchinformationasmayberequiredundertheOfferprocess.
f) The existing promoters and promoter group of the Target Company haveagreednottotransfertheirshareholdingintheTargetCompanyforaperiod
of3(three)yearsfromthedateofconversionoftheOCDs,saveandexcept
300,000SharesheldbypromotersoftheTargetCompany.g) TheAcquirerhasagreedtobecomecopromoteroftheTargetCompanyand
shallhavetherighttoappointonenonexecutivedirectorandnominatetwo
permanentinviteestotheBoardoftheTargetCompany.Suchnonexecutive
directorwill
not
retire
by
rotation
and
shall
be
appointed
in
accordance
with
theSEBI(SAST)Regulations.
h) The parties have agreed to grant certain affirmative voting rights to the
Acquirerwhichshallbeavailableandexercisableonlyafterappointmentof
the director nominated by the Acquirer on the earlier of (i) completion of
theOffer;and(ii)depositof100%oftheOfferconsiderationintotheEscrow
Account.
i) The Acquirer and the promoters of the Target Company have agreed to
certain interserights includingtransferrestrictions,rightof firstoffer,tag
alongright,andcircumstancesunderwhichtherightswillterminate.
j) TheexistingpromotersoftheTargetCompanyhaveundertakencertainnon
compete
and
nonsolicitation
undertakings
in
so
far
as
it
relates
to
the
businessoftheTargetCompany.
k) The Shares, after conversion of OCDs are subject to lockin in accordance
with the provisions of the SEBI ICDR Regulations. The Acquirer has
undertakenthat itshallcomplywiththerequirementsof lockin inrelation
totheSharesafterconversionofOCDs.
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2.1.7 Neither of the Acquirer, PAC or the Target Company has been prohibited by SEBI
from dealing in securities, in terms of direction issued under section 11B or any
otherregulationsmadeundertheSecuritiesandExchangeBoardofIndiaAct,1992
andsubsequentamendmentsthereto.
2.1.8 Ason
date
of
the
Public
Announcement
and
this
Letter
of
Offer,
the
Acquirer
and
the
PACdonothaveanyrepresentativeontheboardofdirectorstheTargetCompany.
However, the Acquirer shall have the right to appoint one non executive director
andnominatetwopermanent inviteestotheBoardoftheTargetCompany,under
the terms of the Investment Agreement, in accordance with the SEBI (SAST)
Regulations. Thepartiesto the Investment Agreementhave agreedtoappoint Mr.
NikhilGandhiupontheearlierof(i)completionoftheOfferinaccordancewiththe
SEBI(SAST)Regulations;and(ii)depositof100%oftheOfferconsiderationintothe
EscrowAccount.
2.2 DetailsoftheproposedOffer
2.2.1
The
Public
Announcement
for
the
Offer
appeared
on
22
July,
2010
in
the
following
newspapers,inaccordancewithRegulation15oftheSEBI(SAST)Regulations.
Publications Editions Language
TheFinancialExpress Alleditions English
Jansatta Alleditions Hindi
MakkalKural Chennaiedition Tamil
Navshakti Mumbaiedition Marathi
(ThePublicAnnouncementisalsoavailableattheSEBIwebsite:www.sebi.gov.in)
2.2.2 The Offer is being made by the Acquirer and PAC to all the Shareholders of the
TargetCompany
(other
than
the
PAC
and
parties
to
the
Investment
Agreement)
as
a
result of the proposed acquisition of (i) upto 40,00,000 Shares of the Target
Company (representing 20.28% of the Emerging Voting Capital of the Target
Company)uponconversionoftheOCDsasdescribedinparagraph2.1.1above;and
(ii)acquirecontrolovertheTargetCompany inthemannerdescribed inparagraph
2.1.1 and 2.1.2 above. In view of the above, the Offer is a mandatory Offer under
regulation10andregulation12oftheSEBI(SAST)Regulations.
2.2.3 TheAcquirerandthePACaremakinganOffertoacquireupto39,44,080Sharesof
thefacevalueofRs.10each,being20%oftheEmergingVotingCapitaloftheTarget
Company in terms of Regulation 21(1)oftheSEBI (SAST) Regulations, at a price of
Rs.587.01/ (Rupeesfivehundredeightysevenandonepaisaonly)perfullypaidup
Share
payable
in
cash,
subject
to
the
terms
and
conditions
set
out
in
this
Public
AnnouncementandthisLetterofOffer.
2.2.4 ForthepurposeofthisOffer,SKILKnowledgeCitiesPrivateLimited(i.e.thePAC) is
theperson acting inconcertwiththeAcquirerfor thepurposeofthe Offer,within
the meaning of regulation 2(1)(e) of the SEBI (SAST) Regulations. Apart from the
PAC,therearenootherpersonsactinginconcertforthepurposeofthisOffer.
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7
2.2.5 TherearenopartlypaidupSharesintheTargetCompanyasondateofthisLetterof
Offer.
2.2.6 Thisisnotacompetitivebid.AsofthedateofthisLetterofOffer,therehavebeen
nocompetitivebids
2.2.7 This
Offer
is
not
a
conditional
offer
and
is
not
subject
to
a
minimum
level
ofacceptancebytheShareholdersoftheTargetCompany i.e.subjecttothetermsof
the Offer, the Acquirer and the PAC will acquire all Shares of the Target Company
thatarevalidlytenderedbytheShareholders.IncasethenumberofSharesvalidly
tendered in the Offer is more than the Shares to be acquired in the Offer, the
acquisition of Shares from each Shareholder will be, as per the provisions of
Regulation 21(6) of the SEBI (SAST) Regulations, on a proportionate basis. Further,
thereisnodifferentialpricing.
2.2.8 Otherthanasstated inthisLetterofOffer,the Acquirer andthePAChaveneither
acquired nor have been allotted any Shares of the Target Company in the last 12
monthsfromthedateofPublicAnnouncement.
2.2.9 Therehavebeennoacquisition(s)ofSharesoftheTargetCompanybytheAcquirer,
orthePACafterthedateofthePublicAnnouncementtillthedateoftheLetterof
Offer.
2.2.10 Shares that are subject to any charge, lien or encumbrance, any court order/any
other attachment/dispute are liable to be rejected in the Offer. Applications in
respect of Shares of the Target Company that are subject matter of litigation
wherein the Shareholders of the Target Company may be prohibited from
transferring the Shares during the pendency of the said litigation are liable to be
rejected ifthedirections/ordersregardingtheseSharesarenotreceivedtogether
withtheSharestenderedundertheOffer.TheAcquirerand/orPACwillacquirethe
Sharestogetherwithallrightsattachedthereto,includingtherightstoalldividends,
bonus and rights subsequently declared. The tender by any Shareholder of any
Shares in the Offer must be absolute, unconditional and unqualified. Lockedin
shares acquired in Offer will be subject to thecontinuation of lockin remaining in
the hands of Acquirer and/or PAC, in accordance with applicable SEBI Regulations
andguidelines.
2.2.11 TheManagertotheOfferdoesnotholdanySharesintheTargetCompanyasatthe
date of Public Announcement. The Manager to the Offer will not deal with the
Shares of the Target Company until the expiry of fifteen days from the date of
closureoftheOfferi.e.November27,2010.
2.3 Objectsoftheacquisition/Offerandfutureplans
2.3.1 The Offer is being made in compliance with Regulations 10 and 12 and other
applicable provisions of SEBI (SAST) Regulations, for the purpose of substantial
acquisition of shares and voting rights, accompanied with change in control and
managementoftheTargetCompany,assetoutinparagraphs2.1.1and2.1.2above,
thereby enabling the Acquirer to exercisejoint control over the Target Company
(along with the existing promoters). The Acquirer will seek appointment of one
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8
director and two permanent invitees on the Board of the Target Company, in
accordancewiththeprovisionscontainedintheInvestmentAgreement,Companies
Act,1956,SEBI(SAST)Regulationsandotherapplicablelaws.
2.3.2 The Acquirer and the PAC would support the existing business of the Target
Company.TheAcquirerwouldbecomethecopromoteroftheTargetCompanyand
intendsto
develop
the
existing
business
of
the
Target
Company
and
strengthen
its
position in the industry. The strategicjoint control over the Target Company will
allowtheAcquirertoestablishitselfintheeducationsector.
2.3.3 As on the date of the Public Announcement, the Acquirer and/or the PAC do not
have any plans to make any major change to the existing line of business of the
Target Company or its subsidiaries or to dispose off or otherwise encumber any
assetsoftheTargetCompany inthenext24months,exceptintheordinarycourse
of business. The Board of the Target Company shall take appropriate decisions in
these matters in the ordinary course of business of the Target Company or to the
extent required for the purpose of restructuring,joint venture, rationalization of
assets,investmentsorliabilitiesoftheTargetCompanyforcommercialreasons,and
operational
efficiencies
and
on
account
of
regulatory
approvals.
2.3.4 Other than as aforesaid, the Acquirer and PAC undertake that they shall not sell,
dispose of or otherwise encumber any substantial asset of the Target Company
withoutthepriorapprovaloftheShareholdersoftheTargetCompany.
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0
122
0
00
3456789676672 8676!"#$#%&
2 '()*+),-./..+*+/+:;+;+/+,E+--+-./+:N,;=+E/,C+
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10
3.1.6 TheshareholdingpatternoftheAcquirerasonthedateofPublicAnnouncement
isasfollows:
NameoftheEquityShareholder Numberofequityshares %ofissuedcapital
Promoters/PromoterGroup
NikhilP.
Gandhi
4,763
Negligible
RupaliB.Gandhi 9,526 Negligible
BhaveshP.Gandhi 4,763 Negligible
PratapraiGandhi 433,433 0.17
NehaGandhi 4,763 0
Nikhil P. Gandhi, Bhavesh P. Gandhi
JointHolders*
15,12,17,247 59.28
MontanaInfrastructureLimited 9,11,87,635 35.75
TotalI 24,28,62,130 95.27
FII/MutualFunds/FIs/Banks
M2N2PartnersLimited 2,523,880 0.99
TotalII 2,523,880 0.99
Public/Others
AshwiniInfrastructurePrivateLimited 94,96,615 3.72
AbhayKumarPandey 15,500 0.01
MadanLalNarula 13,885 0.01
TotalIII 95,26,000 3.74
Total(I+II+III) 254,912,010 100
*NikhilGandhiandBhaveshGandhiarepartnersinMetropolitanIndustries,apartnershipfirmwhich
holdsthesharesoftheAcquirer
NameofthePreferenceShareholder Numberof preference
shares*
%shareholding
Promoters
NA
FII/MutualFunds/FIs/Banks
AshokaInvestmentHoldingsLimited 15,385 76.93
Ambadevi
Mauritius
Holding
Limited
4,615
23.08
Public/Others
NA
Total 20,000 100.00
*FacevalueofpreferencesharesisRs1,00,000pershare
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11
3.1.7 TheAcquirerbeingaholdingcompanyforvariousprojectsderivesincomemainlyfromprojectdevelopment feesbydeveloping its variousprojects,dividend andcapital gain as&when such project is divested.Hence theAcquirer does haveregular sources of income from project development activities. The financialhighlightsof theAcquirer for the yearsendedMarch31,2007,March31,2008and,March31,2009andtheelevenmonthperiodendedFebruary28,2010areasfollows:
(Rs.InLacsunlessotherwisespecified,exceptpersharedata)
Profit&LossStatementAudited
YearendedMarch31,
2007
AuditedYearended
March31,2008
AuditedYearended
March31,2009
Reviewedelevenmonthsended
February28,2010
DividendIncomeandProfitonSaleofInvestments 150.11 534.04 61.34 0.72IncomefromProjectDevelopments
1007.50 2166.61 473.00 483.00OtherIncome 609.53 308.08 (9.35) 91.52TotalIncome 1767.14 3008.73 524.99 575.24TotalExpenditure 868.63 770.63 211.73 166.23ProfitBeforeExceptionalitem,Depreciation,Interest&Tax
898.51 2238.10 313.26 409.01
ExceptionalIncome NIL NIL NIL NILProfitBeforeDepreciation,Interest&Tax 898.51 2238.10 313.26 409.01Depreciation 128.08 117.64 136.24 107.63Interest(net) 293.64 1370.43 22.00 15.37ProfitBeforeTax 476.79 750.03 155.02 286.01ProvisionforTax 120.00 102.00 25.00 44.08ProfitAfterTax 356.79 648.03 130.02 241.93
BalanceSheetStatementAudited
YearendedMarch31,
2007
AuditedYearended
March31,2008
AuditedYearended
March31,2009
Reviewedelevenmonths
endedFebruary28,
2010SourcesoffundsPaidupsharecapital 25238.81 25238.81 25491.20 25491.20PreferenceShareCapital NIL NIL 20000.00 20000.00ReservesandSurplus 22532.27 22632.46 24046.60 24288.53Networth(Note1) 47771.08 47871.27 69537.80 69779.73Securedloans 6022.49 5307.36 11416.85 176.81
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12
BalanceSheetStatement
Audited
Yearended
March31,
2007
AuditedYear
ended
March31,
2008
AuditedYear
ended
March31,2009
Reviewed
elevenmonths
ended
February28,
2010
Unsecuredloans
2293.02
2293.02
NIL
21926.14
Deferredtaxliability NIL NIL NIL NIL
Total 56086.59 55471.65 80954.65 91882.68
Usesoffunds
Netfixedassets 487.99 461.64 506.55 456.63
Investments 14064.40 30934.05 47436.32 49913.30
Netcurrentassets 41534.20 24075.96 33011.78 41512.75
Total 56086.59 55471.65 80954.65 91882.68
OtherFinancialDataAudited
Year
ended
March31,
2007
Audited
Year
ended
March31,
2008
AuditedYear
ended
March31,2009
Reviewed
elevenmonths
endedFebruary
28,2010
Dividend(%) NIL NIL NIL NIL
EarningPerShare*(Rs.) 0.14 0.26 0.05 0.09
ReturnonNetworth**
(%)
0.75 1.35 0.19 0.35
BookValuePerShare***
(Rs.)
18.93 18.97 19.43 19.53
Source Asper certificate dated 19July 2010,provided by statutory auditor of theAcquirer (Bharat Shah &
Associates,Chartered
Accountant,
Membership
no.
32281)
*EarningPerShare=ProfitAfterTax/No.OfEquityshares.
**ReturnonNetworth=ProfitAfterTax/NetworthX100
***BookValuePerShare=(NetWorthPreferenceShareCapital)/No.OfEquityShare
Note1:
Networth = Paid up equity share capital + Preference share capital + Reserve and Surplus; where,
ReserveandSurplus=ReserveandSurplusMiscellaneousExpenditure.
3.1.8 Primaryreasons for the increase in total revenues and net profitof theAcquirer
areasunder:
YearEnded
March
2009
compared
to
Year
Ended
March
2008
a) IncomefromOperationsThe Acquirers primary revenue/gains are mainly out of its investments in
various infrastructure projects being developed by it and subsequent
strategic/other divestments of these projects from time to time. Its total
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13
revenues had reduced to Rs.524.99 lacs in fiscal year ended March 2009 as
compared to Rs.3,008.73 lacs attained during March 2008. The reduction in
gross revenues is primarily attributed to the decline in project development
income from Rs. 2,166.61 lacs in March 2008 to Rs. 473 lacs in March 2009
duetocompletionofprojectsunderdevelopmentinfiscal2008.
b) Profitafter
Tax
TheAcquirersprofitaftertaxhasreducedtoRs.130.02lacsduringthefiscal
year ended March 2009 as against Rs. 648.03 lacs achieved during March
2008. This reduction in profit is on account of lower project development
revenuereceivedastheprojectsundertakenwerecompletedinfiscal2008.
YearEndedMarch2008comparedtoYearEndedMarch2007
a) IncomefromOperationsThe gross earnings of the Acquirer grew to Rs. 3008.73 lacs during the year
ended
March
2008
as
compared
to
Rs.
1767.14
lacs
made
during
March
2007
onaccountofsustainedgrowthinprojectdevelopmentactivitiesduetowhich
project development revenues increased from Rs. 1007.50 lacs in fiscal year
endedMarch2007toRs.2166.61lacsinfiscalyearendedMarch2008.
b) ProfitAfterTaxTheprofitaftertaxoftheAcquirerforthefiscalyearendedMarch2008,stood
atRs.648.03 lacsascomparedtoRs.356.79 lacsmadeduringthefiscalyear
endedMarch2007duetosustainedgrowth inprojectdevelopmentrevenue
leadingtoimprovementintheperformanceduringthefiscalyear2008.
3.1.9 SignificantAccountingPolicies:
a) BasisofpreparationoffinancialstatementsThe Financial Statements are prepared under the historical cost convention,
onanaccrualbasisofaccounting.
b) FixedassetsandDepreciationFixedAssetsarestatedatcostofacquisition includingexpenses incidentalto
theiracquisition.
Depreciationonfixedassetsisprovidedonthewrittendownvaluemethodat
theratesprescribedinScheduleXIVtotheCompaniesAct,1956.
c) InvestmentsLongterm investments are stated at cost of acquisition including expenses
incidentaltotheiracquisition.Diminutioninvalueoflongterminvestmentsis
recognised if the diminution is considered permanent. Interest relating to
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direct acquisition of investments is capitalised and treated as cost of
acquisitionoftheinvestment.
d) StockintradeStockintrade is valued at the yearend at the lower of cost and fair market
value.
e) RevenuerecognitionRevenue from service transactions is recognised as and when the service is
rendered.
f) RetirementbenefitsCompanyscontributiontotheRegionalProvidentFund isprovidedfor inthe
yearinwhichcontributionisdue.
g)Miscellaneous
expenditure
Preliminaryexpensesareamortisedoveraperiodof10years.
h) TaxationCurrenttax
Current tax provision is made annually based on the tax liability computed
after considering tax allowances and exemption using current tax rates in
accordancewiththeprovisionsoftheIncomeTaxAct,1961.
Deferredtax
The Company provides for deferred tax in accordance with the Accounting
Standard22 Accounting for Taxes on Income, issued by The Institute of
Chartered Accountants of India. Deferred tax assets arising on account of
unabsorbed depreciation or carry forward losses are recognized only when
there isavirtualcertaintysupportedbyconvincingevidencethatsuchassets
willberealized.
3.1.10 AsonFebruary28, 2010,thecontingent liabilities and otherfinancialobligations
oftheAcquirer areasunder:
AsonFebruary28,2010
(Rs. lacs)
(a)
Corporate
guarantees
given
on
behalf
of
Associated
concerns4,05,130.00
(b)ClaimsforIncomeTaxnotAcknowledgedbythe
company
119.14
(Source:CertificateforBharatShah&Associates,CharteredAccountants,dated19July2010)
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3.1.11 The names, addresses, experience andqualificationsofthe board of directors of
theAcquirerasondateofPublicAnnouncementareasfollows:
Nameofthe
Director
Designation
&
Appointment
Date
Director
Identification
Number
(DIN)
Qualification ResidentialAddress
Mr.NikhilP.
Gandhi
Executive
Chairman
October08,
1990
00030560 Bachelorof
Commerce
21,SagarVilla,38,
BhulabhaiDesai
Road,Mumbai
400026
Mr.Bhavesh
P.Gandhi
Vice
Chairman
April17,1999
00030623 Bachelorof
Commerce
NewBreachCandy
CoOpSocLtd,D/4
4thFloor,70C
BhulabhaiDesai
Road,Mumbai
400026
Mr.
P
Krishnamurthy Director
January22,
2005
00013565
Chartered
Accountant 1401/1402,
Vinayak
Angan,Old
PrabhdeviRoad,
Worli,Mumbai
400025
Mr.BPMisra Director
March05,
2009
01822448 I.A.S.(Retd) 57,UnitIII,Poorvi
Marg,VasantVihar,
NewDelhi,110057
Delhi
CommodoreV
GHonnavar
Director
October08,
1990
00032105 Graduate
fromthe
National
Defence
Academy
14,Shantivan,1st
FloorRamKrishna
MissionRoad,Khar
(West),Mumbai
400052
Mr.APrasad Director
January22,
2005
00274125 Graduatein
Economics&
I.R.A.S.
(Retd.),
704/705,Sahara
Apartments,Sector
6,PlotNo.11,
Dwarka,NewDelhi
110075
Mr.KRoyPaul Director
January01,
2010
002863821 Graduatein
Engineering,
I.A.S.(Retd)
C II/69,Moti
Bagh I,NewDelhi
110021
Mr.Santosh
Senapati
Nominee
Director
April21,2008
00076219 Bachelor's
Degreein
Mining
Machinery&
MBA
FlatNo.34.NCPA
Apartments,Dorabji
TataRoad,Nariman
Point,Mumbai
400021
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DetailsofexperienceofDirectorsoftheBoardoftheAcquirer
1. Mr. Nikhil P. Gandhi serves as chairman of SKIL Infrastructure group andExecutiveChairmanoftheAcquirer.Heisafirstgenerationentrepreneurwith
business interest in marine equipments, marine engineering and
infrastructure. Mr. Gandhi has approximately 27 years of experience as an
entrepreneur
of
various
infrastructure
development
projects.
Under
hisleadership,the first privateport in India was set up through Gujarat Pipavav
PortLimited.HewasnominatedasatrusteeoftheMumbaiPortTrustontwo
occasions. In 1990, he received the Best Young Entrepreneurs award from
the Ministry of Chemicals and Petrochemicals, Government of India and in
2001, he was conferred the Great Son of Soil award by the All India
ConferenceofIntellectuals.
2. Mr.BhaveshP.GandhiservesasViceChairmanoftheAcquirer.Hisexpertiseon each domain that the Acquirer enters, and his attention to detail are the
qualities that ensure that each project that the Acquirer undertakes is
implemented smoothly and professionally.He has approximately 26 years of
experience
as
an
entrepreneur
and
expertise
in
infrastructure
development
projects.
3. Mr. P. Krishnamurthy, prior to joining SKIL group had served as ViceChairman, JM Morgan Stanley. A Chartered Accountant from Kolkata, Mr.
Krishnamurthyhasanexperienceofnearly34yearsincorporatemanagement
andstrategy,restructuring,mergers&acquisitions,internationalbusinessand
joint ventures, financial management & banking. His expertise includes
managing and supervising business units in India and abroad at the highest
levels.He is an integral partoftheSKIL Infrastructuregroup andcontributes
significantlytopolicydevelopmentandfinancing.
4. Mr.B.P.MisrabelongstotheUnionTerritoriesCadreoftheIAS.Inhispriorassignment, he has represented India as Executive Director in the
International Monetary Fund (IMF) at Washington DC. Besides India, he has
alsorepresentedBangladesh,BhutanandSriLankaattheIMFBoard.Priorto
hisassignmentwithIMF,hedidastintintheUnionMinistryofFinanceinitially
as Additional Secretary and then as Special Secretary. He was nominated to
theLICBoardbytheFinanceMinister.HewasaDirectorintheBoardofDelhi
Metro.
5. Commodore V. G. Honnavar is highly experienced, with 33 years of NavalService and about 27 years in the private sector. Cmde. Honnavar was
awarded the Ati Vishisht Seva Medal for rendering meritorious and
distinguished service to the Indian Navy. With his experience in training and
logistics,hehasbeenakeyfigureintheSKILGroupsince1980.
6. Mr.A. Prasad, I.R.A.S. (Retd.), completed his post graduation in Economicsfrom the Delhi School of Economics and then joined the Indian Railway
Accounts Service in 1963. He has been closely associated with the countrys
industrialsector.InhiscapacityasMember(Finance)andexofficioSecretary
to the Government in the Dept. of Telecommunications (Ministry of
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Communications), Mr. Prasad has played a proactive role in restructuring /
liberalizationexercises inthetelecomsector.Hewasalsoactively involved in
raising resources for Public Sector Companies in the telecom sector in the
internationalcapitalmarkets.Heplaysakeenroleinguidingandshapingthe
growthpoliciesoftheSKILGroup.
7. Mr.K.RoyPauljoined the Indian Administrative Service in 1967 and servedthe State Government of Bihar and the Government of India in variouscapacities. In his long government service spanning 37 years he held various
seniorpositionsincludingSecretarytoGovernmentofIndia intheMinistryof
Civil Aviation and Chairman, Air India, Special Secretary and Additional
Secretary in the Ministry of Environment & Forests, Joint Secretary in the
DepartmentofInformationTechnology,DirectorandDeputySecretary inthe
Ministry of Commerce and Principal Secretary to the State Government of
Bihar inthe Departmentsof Industries and Urban development. Hewas also
thefirstChairmanoftheNationalCoastalZoneManagementAuthority.After
his retirement from the Indian Administrative Service in 2004, he was
appointed Member of the Union Public Service Commission, a constitutional
authority
equated
with
the
Election
Commission
of
India
and
the
Supreme
CourtofIndia.
8. Mr.SantoshSenapatiservesontheBoardofDirectorsasNomineeDirectorofAIG. He is Managing Director of AIG and leading a team of professionals in
AIG's private equity business franchise in India. Prior tojoining AIG, he was
with Jardine Fleming India Securities Ltd. and ABN Amro Bank He has a
Bachelor's Degree in Mining Machinery from the Indian School of Mines,
Dhanbad, and an MBA Degree from the Indian Institute of Management,
Ahmedabad. Mr. Senapati has an experience of 23 years in the field of
management.
3.1.12 ThedetailsofthecompaniespromotedbytheAcquirerareasfollows:
1. GujaratPositraPortCompanyLimited(GPPCL):
Gujarat Positra Port Company Limited was incorporated on July 22, 1998. It
received its certificate of commencement of business on August 7, 1998.
GPPCL is established for the purpose of construction and development of
ports. Ithasyettocommencebusiness. Itsregisteredofficeislocatedat905,
906,SakarII,EllisBridgeCorner,EllisBridge,Ahmedabad380006,Gujarat
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FinancialPerformance
The audited financial results of Gujarat Positra Port Company Limited for the
lastthreeyearsaresummarizedbelow:
(Rs.inlacs,unlessotherwisestated)
March
31,2007
March
31,2008
March
31,2009
Income/Sales
Profit/(Loss)aftertax
Equitysharecapital 5.00 7374.18 8316.06
Reserveandsurplus(excludingrevaluation
reserve)(1)
4.42 4.421417.23
Earnings pershare(Rs.)
Netassetvalueorbookvaluepershare(Rs.)(2)
18.24 10.01 11.70
(1) Netofmiscellaneousexpenditurenotwrittenoff.
(2) FacevalueofeachequityshareisRs.10.
GPPCLhasnotbecomeasickcompanywithinthemeaningofSICAnorisit
subjecttoawindinguporderorpetition.
2. SKILHimachalInfrastructureandTourismLimited(SHITL);
SKIL Himachal Infrastructure and Tourism Limited was incorporated on
December16,2005and itreceivedcertificateofcommencementofbusiness
on 27 October 2006. SHITL was established to carry on the business of
infrastructureandtourismrelatedactivities. Itsregisteredofficeislocatedat
C11 Qutub Institutional Area, New Delhi 110 016. The company is yet to
commencebusiness.
FinancialPerformance
The audited financial results of SHITL for the last three years are summarized
below:(Rs.inlacs,unlessotherwisestated)
March31,2007 March31,2008 March31,2009
Income/Sales
Profit/(Loss)aftertax
Equitysharecapital 5.00 5.00 4705.00
Reserveandsurplus
(excludingrevaluation
reserve)
(1)
Earnings pershare(Rs.)
Miscellaneous
Expenditure 0.39
33.91 33.91
Netassetvalueorbook
valuepershare(Rs.)(2)
9.22
(57.81) 9.93
(1) Netofmiscellaneousexpenditurenotwrittenoff.
(2) FacevalueofeachequityshareisRs.10.
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SHITLhasnotbecomeasickcompanywithinthemeaningofSICAnorisit
subjecttoawindinguporderorpetition.
3. PoseidonInfrastructureLimited(PIL);
PILwas
incorporated
on
January
20,
1998
as
Pipavav
LNG
and
Power
Limited.
With effect from July 9, 1998 the name of the company was changed to
Gujarat Pipavav LNG Company Limited and subsequently to Poseidon
Infrastructure Limited on February 25, 2002. The company was incorporated
for the purpose of setting up of Liquefied Natural Gas (LNG) import and
regasification terminals. Subsequently, the company relinquished its
developmentrightsinfavourofBritishGas.Subsequentto2002,thecompany
changedthenatureof itsbusinesstoinfrastructuredevelopmentandrelated
activities. Its registered office is located at 905, 906, Sakar II, Ellis Bridge
Corner, Ellis Bridge, Ahmedabad 380 006, Gujarat. It has yet to commence
business.
Financial
Performance
The audited financial results of PIL for the last three years are summarized
below:
(Rs.inlacs,unlessotherwisestated)
March31,2007 March31,2008 March31,2009
Income/Sales
Profit/(Loss)aftertax
Equitysharecapital 5.00 5.00 5.00
Reserveandsurplus
(excludingrevaluation
reserve)(1)
Earnings pershare
(Rs.)
Miscellaneous
Expenditure1.54 1.72
1.80
Netassetvalueorbook
valuepershare(Rs.)(2)
6.91 6.566.40
(1) Netofmiscellaneousexpenditurenotwrittenoff.
(2) FacevalueofeachequityshareisRs.10
PILhasnotbecomeasickcompanywithinthemeaningofSICA.
PILmade
an
application
under
the
Easy
Exit
Scheme
(EES),
2010
on
31
August
2010 for the striking off the name of PIL from the registrar of companies
undersection560oftheCompaniesAct,1956.Theapplicationispendingwith
therelevantRegistrarofCompanies.
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4. UrbanInfrastructureHoldingsPrivateLimited(UIHPL)
UIHPLwas incorporatedonJune 28,2005asSKILSEZ InfrastructureHoldings
PrivateLimited.With effectfrom March 22, 2006,thename of thecompany
was changed to Urban Infrastructure Holdings Private Limited. The company
was
established
to
carry
on
the
business
of
infrastructure
facilities
andservices including cities, towns, roads, ports, airports, airways, railways,
tramways, mass rapid transport systems, cargo movement and management
systems, industrial estates, residential houses, green parks, relating port
infrastructure environmental protection and pollution control, transport,
public utilities, municipal services, clearing house agency and stevedoring
services and creation of infrastructure facilities and services including
telecommunication, cell services, satellite communication and networking.
The registered office of the company is located at Jai Centre, 1st
Floor, 34 P.
DMelloRoad,OppositeRedGate,Mumbai400009.
FinancialPerformance
The audited financial resultsof UIHPL for the last threeyears are summarized
below:
(Rs.inlacs,unlessotherwisestated)
FortheperiodendedMarch31,
2007 2008 2009
Income/Sales 1281.8 1252.3 1019.9
Profit(Loss)afterTax (133.9) 344.2 (1528.2)
Equitysharecapital 6215.5 10,001.0 35474.3
Reservesandsurplus
(excluding
revaluation
reserves)(1)
401.0 712.9 (815.2)
Earningspershare
(Rs.)(2)
(0.22) 0.42 (0.49)
Netassetvalueor
bookvaluepershare
(Rs.)(2)
10.64 10.71 9.77
(1) Netofmiscellaneousexpenditurenotwrittenoff.
(2) FacevalueofeachequityshareisRs.10.
UIHPLhasnotbecomeasickcompanywithinthemeaningofSICAnorisit
subjectto
a
winding
up
order
or
petition
5. HorizonCountryWideLogisticsLimited(HCWL)
HCWL was incorporated on June 7, 2007 as Nhava Seva Distriparks Limited.
WitheffectfromOctober17,2007,itsnamewaschangedtoHorizonCountry
Wide Logistics Limited. It received its Certificate for Commencement of
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BusinessonJuly27,2007.HCWLwasestablishedforthepurposeofcarrying
onalltypeofinfrastructureprojects,facilitiesorworksforlogisticsprojectand
relatedinfrastructure.Ithasyettocommencebusiness.Itsregisteredofficeis
located at 13/14, Khetan Bhavan, 198, Jamshedji Tata Road, Churchgate,
Mumbai400020.
FinancialPerformance
The audited financialresults of HCWL for the last two years are summarized
below:
(Rs.inlacs,unlessotherwisestated)
March
31,2008
March
31,2009
Income/Sales 79.34 2768.01
Profit/(Loss)aftertax 10.16 63.89
Equitysharecapital 7034.50 13640.97
Reserveandsurplus(excludingrevaluationreserve)
(1)
10.16 6034.11
Earnings pershare(Rs.) 0.02 0.06
Netassetvalueorbookvaluepershare(Rs.)(2)
10.01 14.42
(1) Netofmiscellaneousexpenditurenotwrittenoff.
(2) FacevalueofeachequityshareisRs.10.
HCWLhasnotbecomeasickcompanywithinthemeaningofSICAnorisit
subjecttoawindinguporderorpetition.
6. SKILKarnatakaSEZLimited(SKSL)
SKILKarnatakaSEZLimitedwasincorporatedon31August,2007videcertification
of incorporation bearing CIN U45200MH2007PLC173683, issued by the Registrar
of Companies, Maharashtra, at Mumbai. SKSL received its certificate for
commencement of business on November 15, 2007 from the Registrar of
Companies, Maharashtra, at Mumbai. SKSL was established for promoting,
developing, building, creating, supplying, operating, owning, contracting,
organisingallkindofSpecialEconomicZoneandinfrastructureprojects,facilities,
works and services. It has yet to commence business. Its registered office is
locatedatSKILHouse,209,BankStreetCrossLane,Fort,Mumbai400023,India.
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FinancialPerformance
TheauditedfinancialresultsofSKILKarnatakaSEZLimitedforthelasttwoyearsare
summarizedbelow:
(Rs.inLacsunlessotherwisestated)
Fortheperiodended31March
2008 2009
Income/Sales NA NA
Profit(Loss)afterTax NA NA
Equitysharecapital 5.00 5.00
Reservesandsurplus(excluding
revaluationreserves)(1)
NANA
Earningspershare(Rs.)(2)
NA NA
Netassetvalueorbookvalueper
share(Rs.)(2)
8.758.75
(1) Netofmiscellaneousexpenditurenotwrittenoff.
(2) FacevalueofeachequityshareisRs.10.
SKSL has not become a sick company within the meaning of the Sick Industrial
Companies(SpecialProvisions)Act,1985(SICA)nor is itsubjecttoawindingup
orderorpetition.
7. SKILAdvanceSystemsPrivateLimited(SASPL)
SKIL Advance Systems Private Limited was incorporated on September 24, 2009
videCertificationofIncorporationbearingCINU74900MH2009PTC196016, issued
by the Registrar of Companies, Maharashtra, at Mumbai as Stupendous
InfrastructurePrivateLimited(SIPL).WitheffectfromMarch05,2010thename
waschangedtoSKILAdvanceSystemsPrivateLimited.SASPLwas incorporated
for the purpose of carrying on the business of scientific, technical and other
research and development activities. It has yet to commence business. The
registered office of SASPL is located at SKIL House, 209 Bank Street Cross Lane,
Fort,Mumbai400023.
FinancialPerformance
NoauditedfinancialsofSASPLareavailablepostitsincorporation.
SASPL has not become a sick company within the meaning of the Sick Industrial
Companies (Special Provisions) Act, 1985 (SICA) nor it subject to awindingup
orderorpetition.
8. SKILShipyardHoldingsPrivateLimited(SSHPL)
SKILShipyardHoldingsPrivateLimitedwas incorporatedonAugust16,2005vide
certification of incorporation bearing CIN U45203MH2005PTC155377, issued by
the RegistrarofCompanies, Maharashtra,at Mumbai.SSHPL wasestablished for
the purpose ofcarryingon business ofpromoting,developing, building,creating,
operating, owning, contracting, organising all kind of infrastructure facilities and
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services. It hasyet to commence business. Its registeredOffice is located at SKIL
House,209,BankStreetCrossLane,Fort,Mumbai400023.
FinancialPerformance
TheauditedfinancialresultsofSKIL Shipyard Holdings Private Limited forthe last
threeyears
are
summarized
below:
(Rs.inLacsunlessotherwisestated)
FortheperiodendedMarch31,
2007 2008 2009
Income/Sales NA NA NA
Profit(Loss)afterTax NA NA NA
Equitysharecapital 1.00 1.00 1.00
Reservesandsurplus
(excludingrevaluation
reserves)(1)
NA NA NA
Earningspershare(Rs.)
(2)
NA NA NA
Netassetvalueorbook
valuepershare(Rs.)(2)
7.70 6.605.30
(1) Netofmiscellaneousexpenditurenotwrittenoff.
(2) FacevalueofeachequityshareisRs.10.
SSHPL has not become a sick company within the meaning of the Sick Industrial
Companies (Special Provisions) Act, 1985 (SICA) nor it subject to awindingup
orderorpetition.
9. SKILHimachal
Waknaghat
SEZ
Private
Limited
(SHWSPL)
SKIL Himachal Waknaghat SEZ Private Limited was incorporated on August 27,
2007 vide Certification of Incorporation bearing CIN U45400MH2007PTC173506,
issued by the Registrar of Companies, Maharashtra, at Mumbai. SHWSPL was
incorporated for the purpose of carrying on business of tourism and leisure
projects and special economic zone focus on tourism and leisure projects. It has
yet to commence business. The registered office of SHWSPL is located at 13/14,
KhetanBhavan,198,JamshedjiTataRoad,Churchgate,Mumbai400020.
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FinancialPerformance
The audited financial results of SKIL Himachal Waknaghat SEZ Private Limited for
thelasttwoyearsaresummarizedbelow:
(Rs.inLacsunlessotherwisestated)
FortheperiodendedMarch31,
2008 2009
Income/Sales NA NA
Profit(Loss)afterTax NA NA
Equitysharecapital 1.00 1.00
Reservesandsurplus(excluding
revaluationreserves)(1)
NA NA
Earningspershare(Rs.)(2)
NA NA
Netassetvalueorbookvalueper
share(Rs.)8.75
8.75
(1) Netofmiscellaneousexpenditurenotwrittenoff.
(2) FacevalueofeachequityshareisRs.10.
SHWSPLhasnotbecomeasickcompanywithinthemeaningoftheSickIndustrial
Companies (Special Provisions) Act, 1985 (SICA) nor it subject to awindingup
orderorpetition.
10. SKILAdvanceEnergyPrivateLimited(SAEPL)
SKILAdvanceEnergyPrivateLimitedwasincorporatedonSeptember24,2009vide
Certification of Incorporation bearing CIN U45400MH2009PTC195998, issued by
the Registrar of Companies, Maharashtra, at Mumbai as Protuberant
InfrastructurePrivate
Limited.
With
the
effect
from
March
05,
2010
the
name
of
SAEPL was changed to SKIL Advance Energy Private Limited. SAEPL was
incorporated for carrying on the business of transmitting, manufacturing,
supplying,generating,distributing,anddealinginelectricityandallformofenergy
and power generated by any source. It has yet to commence business. The
registered office of SAEPL is located at SKIL House, 209 Bank Street Cross Lane,
Fort,Mumbai400023.
FinancialPerformance
NoauditedfinancialsofSAEPLareavailablepostitsincorporation.
SAEPLhas
not
become
a
sick
company
within
the
meaning
of
the
Sick
Industrial
Companies (Special Provisions) Act, 1985 (SICA) nor it subject to awindingup
orderorpetition.
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11. SKIL(Singapore)Pte.Ltd.(SSPL)
SKIL (Singapore) Pte. Ltd. was incorporated on November 30, 2007 under
registration number 200722209Z in Singapore under the relevant Singapore
legislation. SSPL is established for the purpose of carrying on business of
development,
construction
and
operation
of
infrastructure
project,
mines
andmineralsinSouthEastAsia.Ithasyettocommencebusiness.Its registeredoffice
ofSSPLislocatedat10,JalanBeasr,#1105,SimLimTower,Singapore208787.
FinancialPerformance
TheauditedfinancialresultsofSKIL(Singapore)Pte.Ltd.fortheyearended2009is
summarizedbelow:
FortheperiodendedMarch31,
2009
InRupeesinlacs InSGD
Income/Sales NA NA
Profit(Loss)afterTax NA NA
Equitysharecapital 56.05 163322*
Reservesandsurplus(excluding
revaluationreserves)(1)
NA NA
Earningspershare(Rs.)(2)
NA NA
Netassetvalueorbookvalue
pershare(Rs.)(2)
(0.58) (0.017)
(1) Netofmiscellaneousexpenditurenotwrittenoff.
(2) FacevalueofeachequityshareisSGD1
*IncludesSGD163320shareapplicationmoney
(1SGD=Rs.34.32ason31March2009,Source:oanda.com)
12. KaranjaTerminal
and
Logistics
Private
Limited
(KTLPL)
KaranjaTerminalandLogisticsPrivateLimitedwasincorporatedonMay14,2010
videCertificationofIncorporationbearingCINU63090MH2010PTC203226, issued
bytheRegistrarofCompanies,Maharashtra,atMumbai.KTLPL isestablishedfor
the purpose of carrying on business of building, hiring, owning, transferring or
otherwise dealing with ports, shipyards,jetties, harbours, docks, ship breaking,
ship building etc. at any port in India or elsewhere. It has yet to commence
business.TheregisteredofficeofKTLPL is locatedat13/14,Khetan Bhavan,198,
JamshedjiTataRoad,Churchgate,Mumbai400020.
FinancialPerformance
NoauditedfinancilasofKTLPLareavailablepostitsincorporation.
KTLPL has not become a sick company within the meaning of the Sick Industrial
Companies (Special Provisions) Act, 1985 (SICA) nor it subject to awindingup
orderorpetition.
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13. PipavavShipyardLimited(PSL)
PipavavShipyardLimited wasincorporated onOctober17,1997videCertification
of Incorporation bearing registration number 0433193 of 19971998, issued by
the Registrar of Companies, Gujarat, Dadra and Nagar Haveli, at Ahmedabad as
PipavavShipDismantlingandEngineeringLimited.PSLreceiveditsCertificatefor
Commencementof
Business
from
the
Registrar
of
Companies,
Gujarat,
Dadra
and
NagarHaveli,atAhmedabadonDecember2,1997.OnApril29,2005,videFresh
Certificate of Incorporation on Change of Name issued by the Registrar of
Companies, Gujarat, Dadra and Nagar Haveli, at Ahmedabad, the name Pipavav
ShipyardLimitedwasadopted.TheCINofPSLisU35110GJ1997PLC033193.
PSL currently operates Pipavav shipyard, located on the west coast of India
adjacenttomajorsealanesbetweenthePersianGulfandAsia.Pipavavshipyardis
capable of ship construction and repairs for a wide range of vessels of different
sizes and types, including naval vessels and coast guard vessels, as well as the
fabrication and construction of products such as offshore platforms, rigs,jackets
and vessels (but excluding subsea pipelines) for oil and gas companies. Its
Registered
Office
is
located
at
Pipavav
Port,
Post
Ucchaya,
Via
Rajula,
Rajula
365
560, Gujarat and Corporate Office SKIL House, 209 Bank Street Cross Lane, Fort,
Mumbai400023
FinancialPerformance
TheauditedfinancialresultsofPipavavShipyardLimitedforthelastthreeyearsare
summarizedbelow:
(Rs.inlacs,unlessotherwisestated)
FortheperiodendedMarch
31,
2008 2009 2010
Income/Sales 2774.9 6177.8 6,9688.9
Profit(Loss)afterTax 485.9 492.4 (4882.0)
Equitysharecapital 5,7969.3 5,8034.8 6,6579.8
Reservesandsurplus(excluding
revaluationreserves)(1)
6,7074.9 6,7472.8 10,3650.0
Earningspershare(Rs.)(2)
(0.10) 0.08 (0.82)
Netassetvalueorbookvalueper
share(Rs.)(2)
21.51 21.63 24.81
(1) Netofmiscellaneousexpenditurenotwrittenoff.
(2) FacevalueofeachequityshareisRs.10.
PSL has not become a sick company within the meaning of the Sick Industrial
Companies (Special Provisions) Act, 1985 (SICA) nor it subject to awindingup
orderorpetition.TheEquitySharesofPSLarelistedonBSEandNSE.
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14. SKILStrategicDeterrenceSystemsPrivateLimited(SSDSPL)
SKILStrategicDeterrenceSystemsPrivateLimitedwasincorporatedonOctober4,
2010 vide Certification of Incorporation bearing CIN U74999MH2010PTC208594,
issued by the Registrar of Companies, Maharashtra, at Mumbai. SSDSPL is
established for the purpose of carrying on business including designing,
developing,
and
manufacturing
of
arms
and
ammunitions
used
for
defence,internalsecurityandpersonalsecurity.SSDSPLisawhollyownedsubsidiaryofour
Companysinceitsincorporation.Ithasyettocommencebusiness.Theregistered
office of SSDSPL is located at SKIL House, 209, Bank Street Cross Lane, Fort,
Mumbai400023.
FinancialPerformance
NoauditedfinancialsofSSDSPLareavailablepostitsincorporation.
SSDSPL has not become a sick company within the meaning of the SICAnor is it
subjecttoawindinguporderorpetition.
15. SoharFreeZoneLLC
SoharFreeZoneLLC(SFZ)wasestablishedonMay30,2009andregisteredwith
theMinistryofCommerceandIndustry,SultanateofOmanonMay27,2009,vide
commercial registration number 1/07017/4. Sohar Free Zone LLC was
incorporatedforthepurposeofcarryingonthebusinesstodevelopandmanage
SoharSpecialEconomicZoneandotherancillaryactivities.
FinancialPerformance
TheauditedfinancialresultsofSFZforthelastyeararesummarizedbelow:
FortheperiodendedDecember
31,2009
InRupeesinlacs,
unlessotherwise
stated*
InOMR
Income/Sales 5.01 4010
Profit(Loss)afterTax (301.70) (241358)
Equitysharecapital 625.00 500000
Reservesandsurplus(excluding
revaluationreserves)(1)
(301.70) (241358)
Earningspershare(Rs.)(2)
NA NA
Net
asset
value
or
book
value
pershare(Rs.)(2)
65
0.52
*Conversionrate1OMR=Rs.125
SFZhasnotbecomeasickcompanywithinthemeaningofSICAnorisitsubjecttoawinding
uporderorpetition.
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3.1.13 TheequitysharesoftheAcquirerarenotlistedonanystockexchanges.
3.1.14 TheAcquirerhasnotbeenprohibitedbySEBIfromdealing insecurities, interms
ofdirectionsissuedundersection11BoftheSEBIAct,1992asamendedorunder
anyotherregulationmadeundertheSEBIAct.
3.1.15 AstheAcquirerdoes notholdSharesoftheTargetCompanyandhasneverheld
SharesoftheTargetCompanyinthepast,theprovisionsofchapterIIoftheSEBI
(SAST)RegulationsarenotapplicabletoSKILwithrespecttotheTargetCompany.
3.1.16 ComplianceOfficer:
Ms.SwetaShah,SKILHouse,209,BankStreetCrossLane,Fort,Mumbai400023,
Tel.No.02266199000,FaxNo.02222696023.
3.2 SKILKnowledgeCitiesPrivateLimited(PAC)
3.2.1
The
PAC
was
incorporated
as
a
private
limited
company
on
2
April,
2007
under
the
CompaniesAct,1956.Itsregisteredofficeislocatedat13/14,KhetanBhavan,198,
JamshedjiTataRoad,Churchgate,Mumbai400020,Maharashtra,India,Tel.No.
02267158000,FaxNo.02267158099.
3.2.2 ThePAChasbeenpromotedbyMr.R.K.Vijayan.
3.2.3 The PAC is established for the purpose of carrying on the business of imparting
training inallfieldsofknowledgebasededucation.ThemainobjectofthePAC is
to carry on business of parting knowledge by establishing institutions, education
centers, training centers, computer centers, research centers, university for
advancement of knowledge, information technology, engineering, electronics,
technical, medicine, agriculture, management whether general, professional,
vocational,technicalorotherwise andto acquire,establish,promote,andrunor
otherwise mange such centers for imparting training in all fields of knowledge
basededucation.
3.2.4 TherearenocompaniespromotedbyPAC.
3.2.5 AsondateofPublicAnnouncement,sharecapitalofthePACconsistsofthepaid
upandsubscribedequitycapitalofRs.6.00lacsconsistingof60,000fullypaidup
equityshareseachofafacevalueofRs.10.
3.2.6 TheshareholdingpatternofthePACason31July,2010isfollows:
Nameof
the
Shareholder
Numberof
equity
shares
%of
issued
capital
Promoters
Mr.R.K.Vijayan 27,500 45.83%
TotalI 27,500 45.83%
FII/MutualFunds/FIs/Banks
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NA
Public/Others
SKILInfrastructureLimited 5,000 8.33%
Mr.NileshMehta 27,500 45.83%
TotalII 32,500 54.16%
Total(I+II) 60,000 100%
3.2.7 ThefinancialinformationofthePACisasfollows:
Since the company has not yet commenced its business, Profit & Loss account
statementhasnotbeenprepared.
(AmountinRs.lacsunlessotherwisespecified,exceptpersharedata)
BalanceSheet
Statement
AuditedYearended
March31,2008
AuditedYearended
March31,2009
Reviewedeleven
monthsended
February28,2010
Sourcesoffunds
Paidup
share
capital
6.00
6.00
6.00
PreferenceShareCapital NIL NIL NIL
ReservesandSurplus NIL NIL NIL
Networth(Note1) 4.74 4.63 4.62
Securedloans NIL NIL NIL
Unsecuredloans NIL NIL NIL
Deferredtaxliability NIL NIL NIL
Total 4.74 4.63 4.62
Usesoffunds
Netfixedassets NIL NIL NIL
Investments NIL NIL NIL
Netcurrentassets 4.74 4.63 4.62
Total 4.74 4.63 4.62
OtherFinancialData
AuditedYearended
March31,2008
AuditedYearended
March31,2009
Reviewedeleven
monthsended
February28,2010
Dividend(%) NIL NIL NIL
EarningPerShare*(Rs.) NIL NIL NIL
Returnon
Networth**
(%)N.A.
N.A.
N.A.
BookValuePer
Share***(Rs.)
7.90 7.72 7.70
*EarningPerShare=ProfitAfterTax/No.Ofequityshares.
**ReturnonNetworth=ProfitAfterTax/NetworthX100
***BookValuePerShare=(NetWorthPreferenceShareCapital)/No.Ofequityshare
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Note: 1 NetworthisarrivedafterdeductingmiscellaneousExpenditurefromPaidupShareCapital.
Source Aspercertificatedated19July2010,providedbystatutoryauditorofthePAC(BharatShah&
Associates,CharteredAccountant,Membershipno.32281)
3.2.8 Primaryreasonsfortherise/fallinthenetprofitofthePACareasunder:
As the PAC has not yet commenced its operations, theprofit and loss account
statementhas
not
yet
been
prepared.
3.2.9 SignificantAccountingPolicies:
Miscellaneousexpenditure
Miscellaneous expenditure comprises preliminary expenditure incurred in
connection with the formation of the Company and non operative Expenses.
These expenses shall be written off when the project is ready to commence
commercialoperations.
3.2.10 As on February 28, 2010, there are no contingent liabilities of the PAC. (Source:
Certificatefor
Bharat
Shah
&
Associates,
Chartered
Accountants,
dated
19
July
2010)
3.2.11 Thenames, addresses,experience and qualificationsofthe BoardofDirectorsof
thePACareasbelow.
Nameofthe
Director
Designation&
Appointment
Date
Director
Identification
Number(DIN)
QualificationResidential
Address
Mr.R.K.
Vijayan
Director
2April,2007
00286513 B.Com,
CAIIB
78/13,Brindaban
Society,
Majiwade,Thane
(West),Mumbai
400601
Mr.Nilesh
Mehta
Additional
Director
12July2010
02101502 ACS
AICWA
BCOM
1101/A,Vastu
Riddhi,Pumo
House,Andheri,
Mumbai,
Maharashtra,
India400093
DetailsofexperienceofDirectorsoftheBoardofthePAC
1. Mr. R. K. Vijayan is an experienced banker turned key commercial andfinancial functionary of the SKIL group since June 2001. He is a commerce
graduate with banking professional qualification having thirty years of
experienceinbankingpriortojoiningtheSKILgroup.
2. Mr. Nilesh Mehta is a post graduate in commerce and he is an associatememberoftheInstituteofCost&WorkAccountantsofIndiaandtheInstitute
ofCompanySecretariesofIndia.Hehaswideexperienceinthefieldoffinance
andcorporatelaws.
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3.2.12 TheequitysharesofthePACarenotlistedonanystockexchanges.
3.2.13 The PAC has not been prohibited by SEBI from dealing in securities, in terms of
directions issued under section 11B of the SEBI Act, 1992 as amended or under
anyotherregulationmadeundertheSEBIAct
3.2.14 Asthe
PAC
does
not
hold
Shares
of
the
Target
Company
and
has
never
held
Shares
oftheTargetCompany inthepast,theprovisionsofchapterIIoftheSEBI(SAST)
RegulationsarenotapplicabletothePACwithrespecttotheTargetCompany.
4 OPTIONINTERMSOFREGULATION21(2)If, pursuantto thisOffer,the public shareholding is foundto be reducedbelowtheminimum
level required as per the listing agreement entered intoby the Target Company with the BSE
and NSE, (the Listing Agreements), as a result of acquisition of Shares under (i) the
PreferentialAllotment;and/or(ii)anyacquisitionofshares fromopenmarket;and/or(iii)the
Offer, the Acquirer and PAC shall take necessary steps to facilitate compliance of the Target
CompanywiththerelevantprovisionsoftheListingAgreementandnotificationoftheCentral
Government
dated
June
4,
2010
amending
the
Securities
Contracts
(Regulation)
Rules,
1957
withinthetimestipulatedtherein.
5 BACKGROUNDOFTHETARGETCOMPANY EVERONNEDUCATIONLIMITEDNote:TheinformationprovidedinrelationtotheTargetCompany,itspromoterandpromoter
groupasprovidedinthisLetterofOfferandAnnexuresfiledwithSEBIhasbeeninsertedbased
oninformationreceivedfromtheTargetCompany,itspromoterandpromotergroupandalso
frominformationavailablefrompublicavailablesources.
5.1 The Target Company was incorporated as a public limited company on 19 April, 2000 as
Everonn Systems India Limited under the Companies Act, 1956 and commenced its
businessundercertificateofcommencementofbusinessdated24April2000.Thenameofthe Target Company was changed to Everonn Education Limitedvide fresh certificate of
incorporationdated19August2009toreflectthechangeintheprimarybusinessfocusof
theTargetCompany.
5.2 TheregisteredofficeoftheTargetCompanywasshiftedfromOoty,TamilnadutoChennai,
Tamilnadu on 30December, 2005videa fresh certificate of registration of the Company
Law Board under Section 16(3) of the Companies Act, 1956 and is presently situated at
No. 82, IVAvenue,AshokNagar,Chennai 600 083,Tel : 044 2471535659;Facsimile:
04424717845.ThecorporateofficeofTargetCompanyissituatedatEveronnHouse,Plot
No:9699,IndustrialEstate,Perungudi,Chennai600096,Tel:04442968400;Facsimile:
04442968488.
5.3 The Target Company is currently engaged in the business of education and training
offering satelliteenabled learning and providing a blend of traditional and digitized
contenttotheschools,collegesandretailsegments.ThishashelpedtheTargetCompany
toofferqualityeducationtostudentseven inthemostremotepartsofIndia.TheTarget
Company has 8492 learning centres across 27 states. The Target Company also provides
education and training solutions through satellite based Very Small Aperture Terminal
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(VSAT)technologytovariousschools,collegesandlearningcentresacrossIndia.
5.4 The authorised share capital of the Target Company as on the date of the Public
Announcement was Rs. 200,000,000 divided into 20,000,000 Shares and the issued and
paidupsharecapitaloftheTargetCompanyasonthedateofPublicAnnouncementisRs.
15,12,04,000 (Rupees Fifteen crores twelve lacs and four thousand only) divided into
15,120,400Shares.
The
Board
of
the
Target
Company
has
passed
resolution
dated
19
July,
2010 approvingthe increase in authorizedsharecapitalofthe Target Company from Rs.
200,000,000 divided into 20,000,000 Shares to Rs. 250,000,000 divided into 25,000,000
Shareswhichissubjecttoshareholdersapprovalinthegeneralmeeting.
5.5 There are no partly paidup shares or securities convertible into Shares of the Target
Company,exceptthefollowing:
(i) 600,000 warrants allotted to some of the promoters of the Target Company,
convertibleattheoptionoftheholder intoone ShareatRs.430.45perwarrant
and optionally convertible in one or more tranches before the maturity date, 10
February, 2012. If the holder exercises its right of conversion in full, 600,000
Shareswouldbeissuedtotheholder;
(ii) zero coupon fully convertible debentures of Rs. 10,40,00,000 allotted on
preferentialbasistononpromoters,namelyHTMediaLimited,convertibleatthe
optionoftheholderintoequivalentnumberofSharesattherateofoneSharefor
everyzerocouponfullyconvertibledebenture,convertibleafter30daysfromthe
relevantdatebutbeforeexpiryof18monthsfromthedateofallotment,inoneor
more tranches. The relevant date for calculation of pricing for the fully
convertibledebenturesis31March2011;
(iii) zero coupon fully convertible debentures of Rs 2,28,00,000 allotted on
preferential basis to non promoters, namely DB Corp Limited, convertible at the
optionoftheholderintoequivalentnumberofSharesattherateofoneSharefor
everyzerocouponfullyconvertibledebenture,convertibleafter30daysfromthe
relevantdate
but
before
expiry
of
18
months
from
the
date
of
allotment,
in
one
or
more tranches. The relevant date for calculation of pricing for the fully
convertibledebenturesis30November2011;
(iv) 40,00,000 OCDs having a face value of Rs. 520.87/ each, aggregating to
Rs.208,34,80,000/ (Rupees Two hundred and eight crores, thirty four lacs and
eightythousandonly)andoptionallyconvertiblebeforethematuritydate, inthe
monthofFebruary2012allottedtoAcquirer.IftheoutstandingOCDsholder, i.e.
the Acquirer exercises its right of conversion in full, 40,00,000 Shares would be
issuedtotheAcquirer.
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5.6 The Emerging Voting Capital of the Target Company as on date of the Public
Announcementhasbeencalculatedasunder:
Particulars Issued,subscribed
andpaidupshares
Votingrights %of
Outstanding
shares
%ofVoting
rights
Fullypaidupequity
capital
15,120,400 15,120,400 100% 100%
Partlypaidupshare
capital
NIL NIL NIL NIL
Total 15,120,400 15,120,400 100% 100%
EMERGINGVOTINGCAPITAL(ReferNote1) No.ofShares
FullypaidupcapitalasondateofPublicAnnouncement 15,120,400
Add:Preferential Issueof600000warrantsmadetosomeofthe
Promotersdueforconversionby10February,2012.Assumingfull
conversionof
warrants
into
Shares
(Refer
Note
2)
600,000
Add: Preferential issue of OCDs made to Acquirer Assuming full
conversion,SharestobeissuedonconversionofOCDsatpriceof
Rs.520.87/
4,000,000
EMERGINGVOTINGCAPITAL 19,720,400
Note:
1. EmergingVotingCapitaloftheTargetCompanyexcludesthefollowing:Pursuanttotheapprovalbytheshareholdersintheannualgeneralmeetingheldon27July,2010,
BoardoftheTargetCompanyinitsmeetingheldon11August,2010hasallotted zerocouponfully
convertibledebenturesofRs.10,40,00,000/ andRs.2,28,00,000/ (FCDs)onpreferentialbasisto