Solectron to hive off EMS biz, equity to be cut 50%

The board of directors of  Solectron Centum Electronics approved the demerger of the electronic manufacturing services (EMS) division into a new company, Solectron EMS India, w.e.f. October 1, 2006.

According to a release issued by Solectron to the BSE today, the proposed scheme envisages that the current share capital of the company to be divided equally between the two companies in the ratio of 1:1 i.e for every two equity shares of Rs 10 each held in the company, shareholders will be entitled to one equity share of Rs 10 of Solectron EMS and one share of the company.

"The share capital of the company, as on October 01, 2006, stood at Rs 14.80 crore, and 74 lakh shares would be cancelled under the proposed scheme," the release added.