Zenith denies business unit sale report

MUMBAI, INDIA: Last week, a financial daily had published a news report dated 9 June claiming that Zenith Computers may sell its personal computer (PC) business to an entity named R P Infosystems.

However, when CyberMedia News contacted Raj Saraf, Zenith Computers' chairman and managing director he said, “The media report published by the newspaper is false and the information is completely incorrect.”

The BSE listed company in response to the media report has issued a public statement and also submitted it to the stock exchange in the interest of investors. A copy of the statement is with CyberMedia News.

“Zenith has no intention of de-merging and selling its PC business to R P Infosystems or anyone else. We have never met or spoken to R P Infosystems’ management or anyone from R P Infosystems, including their chairman Kaustav Ray and therefore it is impossible that we are in discussions with them,” Saraf said in the statement.

Further, “We have not signed any non-disclosure agreement with R P Infosystems, as stated in the article nor is there any kind of due diligence in process. Hence, the statement in the article that Zenith and R P Infosystems have signed a non-disclosure agreement as part of due diligence process is false,” the statement said.

Moreover, contrary to the media report, Saraf has stressed that the company is bullish about the PC business in India. “We continue to invest in our PC business and are bullish about it in India. Our record of continuously bringing innovations and products is a testament to that. The latest example of that is the Zenith SmartStyle PC, the world’s thinnest and first LED based all-in-one computer, which was launched earlier this week.”