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VisualSoft board okays 8:5 swap ratio for merger into Megasoft

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VisualSoft Q2 revenue nosedives

Hyderabad , Nov. 1

The board of directors of VisualSoft Technologies Ltd approved the merger into Megasoft at a share swap ratio of 8:5, even as the company's second quarter results nosedived to a new low. The uncertainty and merger-related issues seem to have taken a heavy toll of the company revenues.

The company said the board which met here onTuesday considered and approved the scheme of amalgamation and entitlement ratio submitted by consulting firm PricewaterhouseCoopers. Accordingly, eight shares of VisualSoft Technologies of Rs 10 each would be converted into five shares of Megasoft.

The company had also appointed Keynote Corporate Services Ltd to obtain an independent second entitlement ratio on the amalgamation . Keynote too recommended the same swap ratio.

Meanwhile, Megasoft informed the BSE that its board of directors approved the stock swap ratio with VisualSoft. VisualSoft recorded total income of Rs 18.33 crore with a net profit of Rs 0.2 crore for the quarter ended September 30, 2006 as against total income of Rs 54.13 crore and a net profit of Rs 6.1 crore for the corresponding quarter last year.

During the last fiscal, the company had revenues of Rs 163.91 crore and a net profit of Rs 20.20 crore.

VisualSoft shares ended at Rs 83.50 on the BSE. Megasoft closed at Rs 130.95..

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