In a statement issued today, Sebi pointed out that the decision was taken after taking into consideration the recommendations of the Panel and the fact that the acquisition of the control of the target company (Avery India) "is incidental to the global acquisition transaction".

This is, however, subject to the shareholders of Avery India passing a special resolution at a meeting of the shareholders permitting voting through postal ballot.

Sebi further ordered that in view of GEC Avery being interested in the resolution ratifying the change in control, they should abstain from voting at the shareholders meeting. Besides, the acquirer has also been directed to submit a report to Sebi within 15 days of completion of the process of ratification by postal ballot.

Weigh-Tronix LLC, USA had earlier entered into an agreement through its 100 per cent subsidiary, Weigh-Tronix UK Limited with Marconi Corporation plc, to acquire the entire shareholding of the Avery Berkel Group of companies (Avery Berkel) which consists of GEC Avery International Limited, UK (GECAvery) and Maatchapij Van Berkel's Patent BV, Netherlands. GEC Avery holds 51 per cent of capital of Avery India Ltd (the target).