GTL to acquire Redington

MUMBAI: GTL's board of directors, at their meeting held today, has approved the proposal to forge an alliance with the Redington group.

The Redington group`s operations are focussed on information technology. Its major business divisions are systems, packaged software and services. It has deployed CRM tools, automated its sales force and initiated steps in providing proactive customer support. The group`s operations are spread across countries such as India, Singapore, UAE, Iran, Egypt, Saudi Arabia, Jordan, Kuwait, Oman, Bahrain, Lebanon, Syria and Nigeria.

The proposal involves GTL group acquiring, subject to necessary approvals, the Redington group comprising of Redington India Ltd, Redington Pte Ltd, Singapore and Redington Gulf FZE, Middle East for a total consideration of $95 million in a cash and stock deal. Out of this $45 million is payable by stock swap and the balance $50 million in cash.

The estimated revenues of Redington group for the financial year March 31, 2003 are expected to be over Rs 2,500 crore ($525 mn) out of which Indian operations are likely to be over Rs 1,400 crore ($285 mn). The revenues from its operations based out of its Singapore are expected to be $160 million and that from the Middle East are expected to be $80 million. The consolidated revenues of combined entities would be over Rs 3,000 crore (approx $625 mn).

At the BSE today, the shares of the telecom equipment major closed at Rs 81.80, up 0.31 per cent from its previous close of Rs 81.55.

Source: IRIS