Electra Partners of Mauritius will hold 22 per cent while the rest will be held by the public. The formal merger is expected to be completed by July 2001, according to company sources. The merger will enable Zensar Technologies to get automatic listing at the bourses. Senior company officials pointed out that it would help the Esop (Employee stock option programme) as Zensar Technologies currently is not listed.

The board of directors of Fujitsu ICIM Ltd and Zensar Technologies, at their respective meetings held on February 8, 2001, approved the merger of the two companies. Prior to the merger, Fujitsu ICIM held 74.9 per cent of Zensar Technologies while 25.1 per cent was held by Electra Partners.

The share exchange ratio was agreed to as one equity share of Rs 10 each of Fujitsu ICIM for every one equity share of Rs 10 each of Zensar Technologies. The paid up equity share capital of Fujitsu ICIM and Zensar Technologies are at Rs 17.44 crore and Rs 23.29 crore respectively.

The paid up share capital of the merged company after the cancellation of shares held by the holding company will be Rs 23.29 crore. The merger will be effective from April 1, 2000 subject to approval of the Mumbai High Court.The scheme of merger flows from an out-of-court settlement between RPG and Fujitsu of Japan. The consent terms of settlement having been filed at the City Civil Court at Pune and are subject to the City Civil Court Order. According to the terms of the settlement, Fujitsu have agreed to dispose off its 10 per cent shareholding in Fujitsu ICIM Ltd.

The proposed merger, according to the companies, will result in the best interest of shareholders and the employees.