Hinduja TMT shareholders approve HTMT Demerger

Hinduja TMT Ltd has announced that the shareholders of the Company have unanimously voted in favour of the Scheme for demerger of the Company’s IT/ITES-BPO undertaking into HTMT Technologies Ltd. At a well-attended meeting held in Mumbai on December 04, 2006, all valid votes cast by shareholders were in favour of the demerger Scheme. The results of the poll have been displayed at the Company’s registered office.

The Scheme having been approved by the shareholders, a petition praying for sanction of the same will be filed with the Hon’ble High Court of Judicature at Bombay, as per legal requirements.

The demerger is expected to unlock value for the shareholders. With the IT/ITES-BPO being demerged into an independent pure play focused company, market visibility as well as industry and investor recognition is expected to improve. While the Company has been rapidly expanding its global delivery footprint and has transformed itself into a global enterprise, the sharper focus on IT/ITES-BPO would help at tract further global customers and top class talent, apart from aiding organic and inorganic growth initiatives.

The demerger would also help the Company’s media / broadband interests to benefit in the changing business and regulatory environment. Going forward, expansions through alliances, partnerships, strategic investments and joint ventures including mergers and acquisitions will be a key growth strategy for these businesses and the demerger and restructuring within these businesses, would facilitate these initiatives. Conditional Access System (CAS) through cable has already been notified by the Central Government w.e.f. January 01, 2007 in South Mumbai as well as in the National Capital Territory of Delhi and the Company’s cable subsidiary (Indusind Media and Communications Ltd — IMCL) is in the final stages of completing formalities in connection therewith. CAS will provide immense benefit to subscribers, not only by way of reduced costs, freedom to choose pay-channels as well as digital pictures, but also by way of Value Added Services that would be rolled out by IMCL.

Source : Equity Bulls

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