Xerox Modicorp intends to acquire 64,54,552 shares of Modi Xerox, which represents 23.5 per cent of its Rs 33.90 crore equity. It has also decided to acquire 3,00,000 shares of MXFSL, representing 20 per cent of its Rs 1.5 crore equity. Xerox Modicorp is an unlisted company.

Subsequent to the open offer, the two companies will be merged with Xerox Modicorp. The merger decision is aimed at providing greater synergies that will result in better utilisation of various resources at the command of Xerox. To ensure arationalised and stronger capital structure for the company, the Board of Directors of Xerox ModiCorp have decided to issue bonus shares to the existing shareholders by capitalising the reserves and increasing the share capital of Xerox ModiCorp to Rs 25 crore. In addition, to facilitate the enhanced involvement of Xerox Corporation in the management of the Xerox business in India through its three joint venture companies, the two joint venture companies have decided to realign their shareholding to ensure that Xerox Corporation get up to 50 per cent + 1 equity share in each of the joint venture companies. The shareholding of the combined entity will reflect this pattern.

The amalgamation is effective from April 1, 1999.

Back in the black
It seems the market had indications of a turnaround from Modi Rubber (on BSE, the scrip had been rising since March 15). In less than two months, the scrip has more than doubled to Rs 39 from its mid-March low of Rs 18.10. In the second-quarter ended March 31,1999, the company earned Rs 5.37 crore as net profit against a loss of its Rs 1.73 crore in the corresponding period last year. During January-March 1999, the company's net sales stood at Rs 233.80 crore against Rs 209.30 crore last year. For the fiscal year ended September 1998, the company had incurred a Rs 2.86 crore loss on a net sales figure of Rs 829.36 crore.

A megabyte
The 100 per cent appreciation in Computech International's net profit to Rs 10.63 crore has gone down well with the market. On BSE, the scrip gained more than 20 per cent to close its Thursday session at Rs 37.80 from its April 28 level of Rs 31. In fiscal 1999, Computech International earned a net profit of Rs 10.63 crore against its fiscal 1998 net profit of Rs 4.98 crore. The company's net income from operations went up by 34 per cent to Rs 86.86 crore from Rs 64.84 crore in fiscal 1998. Gross profit on the other hand went up by 43 per cent to Rs 13.67 crore from Rs 7.75 crore.