Hinduja TMT board approves split ratio

Mumbai, Sep 1 (UNI) The board of Hinduja TMT today approved spinning off its software services and back-office outsourcing division into a separate company.

In a statement, the company said its shareholders would get one share in the new company, HTMT Technologies and one share in Hinduja TMT for every two held. ''Media is so big and there is convergence happening within its various sub-sets,'' Global Chief Financial Officer Yagnesh Sanghrajka said. ''So we decided to separate it from IT services and then consolidate the various business segments together.'' He told reporters the company had also set aside USD 140 million from its funds for acquisitions by the new unit in the software sector.

HTMT Technologies hoped to make an acquisition in the U S in this fiscal year, Mr Sanghrajka said adding that the split of information technology services and media-related businesses would help give separate focus on each.

HTMT Technologies would have a capital base of 20.45 crore shares and list its shares in stock exchanges by the end of the fiscal year.

For the year to March 2006, information technology services business had revenues of USD 66 million, while media and entertainment reached USD 34 million, he said.

Hinduja TMT had cash reserves of USD 300 million, out of which it would spend USD 125 million on expansion of media business.

UNI SN MJ AW2021