Templeton to pickup 4.9% stake in Sonata

BANGALORE: Franklin Templeton Group of USA has proposed to invest in

5,152,506 shares of the city-based Sonata Software Limited, for a total

consideration of Rs 27.51 crore. Sonata will shortly approach its shareholders

for their approval to issue fresh equity shares to Franklin Templeton equivalent

to 4.9 per cent of the expanded equity.

Sonata has been delivering e-business solutions to the Franklin Templeton

Group in the last one year. At its board meeting held here on Friday, the board

of directors of Sonata Software Limited, decided to forward the proposal to the

shareholders, seeking their approval.

Franklin Templeton is one of the world’s largest investment management

companies based in San Mateo, California, USA and manages $230 billion (as of

September 30, 2000) in mutual funds and other investment vehicles for

individuals, institutions, pension plans, trust, partnerships and other clients

globally.

Franklin Templeton International president Charles E Johnson said,

"Leveraging technology to provide innovative products and services to our

customers would be the key strategy for Franklin. In pursuit of this strategy,

we want to work with partners on a long-term basis, to build our growing global

investment management business by deploying relevant emerging technologies. We

are very excited about our association with Sonata and our investment in Sonata

is a reinforcement of our commitment to grow this association to achieve mutual

business goals".

The firm offers over 240 investments product, available under the Franklin

Templeton and Mutual Series brand names, serviced and has 6,500 employees in

more than 29 countries and services more than 10 million unit holder accounts

worldwide. Meanwhile, Sonata's shares closed Rs 2.15, or about 12 per cent, up

at 20.35 at the Bombay Stock Exchange on Thursday, while the IT index finished

5.36 per cent up.