Software business to be moved to Pentafour Communications

BANGALORE: Pentafour Software and Exports Ltd. (PSEL) plans to transfer its software business division to its group company, Pentafour Communications Ltd. (PCL).

Meanwhile, PCL plans to raise $75 million through equity/GDR/ADR issue on a private placement/preferential placement basis. Three firms including Price WaterhouseCoopers have been appointed to value the software division. PSEL's board will also consider a restructured business plan with more focus on multi-media. PSEL said that its board of directors would meet on December 10 to consider this proposal.

An extraordinary general meeting (EGM) is to be convened to seek its shareholders' approval. After the proposed transfer of the software division, PSEL will focus mainly on multimedia. PCL's board is also scheduled to meet on December 10 to consider the proposals to raise resources and to increase the authorized share capital from the present Rs 15 crore to Rs 50 crore. Pentafour Software and Exports lately has been repositioning itself as a multimedia software company. Pentafour has earmarked about $100 million over the next two years for acquisition of companies.