Zicom restructuring business to focus on high-growth areas
05 Mar 2010
Zicom Electronic Security Systems Ltd, which sold its electronic security system business to Schneider Electric India Pvt Ltd, today announced plans to restructure its business and focus on high-growth sunrise sectors. (See: Schneider Electric to acquire two business units of Zicom for Rs225 crore)
The board of directors, at its meeting today, resolved that the company would obtain a fair valuation report in respect of the business sale, the company said in a filing with the Bombay Stock Exchange (BSE).
The board is scheduled to meet again on 8 March 2010 to approve conducting of postal ballot for obtaining approval of the shareholders and to take note of the valuation report.
Further, the company said, it would desist from doing businesses of the type sold to Schneider Electric India under the non-compete clause and that Pramoud Rao, managing director and Manohar Bidaye, chairman of the company, who are also promoters of the company, would provide consultancy to Schneider during the transition period.
Pramoud Rao and Manohar Bidaye each would be paid certain consideration for the non-compete and non-solicitation obligations, the release said.
This, however, will not impact the company's ability to develop all the retained businesses and explore new growth opportunities, the release added.