Pentafour to hive off unit

Pentafour to hive off unit
ENS ECONOMIC BUREAU

MUMBAI, DEC 6: In a strategic move, Pentafour Software & Exports Ltd (PSEL) is hiving off its business software development division, as a going concern, to Pentafour Communications Ltd (PCL). The board of directors of both the companies are meeting on December 10 to consider the proposal and also convene the extra-ordinary general meeting (EGM).

PCL plans to fund this acquisition through a mix of ADR or GDR or equity to the tune of $75 million. Three firms including Price WaterhouseCoopers have been appointed to value the software division.

PSEL board will also consider a restructured business plan with more focus on multi-media. Multi-media currently contributes 55 per cent of the total turnover of PSEL with the software development business accounting for the balance.

The company has posted a turnover of Rs 317 crore for the six-month period ended September 30, 1999. During 1998-99, PSEL had clocked a turnover of Rs 530.78 crore and a PAT of Rs 119.12 crore.