Essar Steel, in a release issued to the BSE today, has announced the terms of re-organisation as provided in the scheme sanctioned by the High Court of Gujarat through its order dated February 28, 2005.According to a release issued by the company to the BSE today, the scheme has been approved by shareholders through a special resolution passed at the 27th AGM held on July 19, 2003.The company has fixed May 2, 2005 as the record date for the proposed scheme of arrangement, the release added.As per the scheme, four equity shares shall stand cancelled out of ten equity shares of Rs 10 each held by equity shareholders."In lieu of such reduction, 4, 0.01% cumulative redeemable preference shares of Rs 10 will be issued to shareholders whose shareholding has been reduced. The preference shares will be redeemed at par in four quarterly installments starting October 1, 2017," the release said."The preference shares shall not entitle the holders thereof to any voting rights, except in respect of resolutions that directly affect the rights attached to the preference shares," the release added.The remaining six equity shares of Rs 10 each out of ten equity shares will continue to be held by equity shareholders as fully/partly paid without any alterations to the rights, the release added.
