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Silverline shareholders okay SeraNova buy

MUMBAI: Silverline Technologies Ltd announced on Wednesday that the shareholers had approved the acquisition of SeraNova Inc., a global provider of eBusiness consulting and integration services.

At an extraordinary meeting held on Tuesday, the shareholders of the company approved the acquisition of SeraNova Inc.

They also approved an increase in the authorised share capital to Rs 110 crore, or US $23.6 million (110 million shares of Rs 10 each) through the creation of 25 million shares;

Issuance of a maximum of 15.5 million shares, represented by 7.75 million American Depository Shares (ADSs) (equivalent to 12.70 million underlying shares) to SeraNova's common stock holders at an exchange ratio of 0.35:1 and a maximum of 14 million ADSs to SeraNova's preferred stockholders;

Unsecured convertible debentures of Silverline Technologies for the settlement of SeraNova preferred stockholders, with the option to convert the debentures into Silverline Technologies ADSs;

Silverline Technologies ADS-linked stock options to the Directors and employees of the company's subsidiaries (including SeraNova), including the conversion of currently allocated 5.7 million SeraNova options into Silverline options in the ratio of 0.35 :1; and

Increasing the limit for strategic investments by Silverline Technologies by Rs 250 crore, or US $ 53.6 million to Rs 1,100 crore, or US $ 236 million, enabling the investment in the acquisition of SeraNova. --Our Bureau