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Journalism of Courage
MUMBAI, DEC 6: In a strategic move, Pentafour Software amp; Exports Ltd PSEL is hiving off its business software development division, as a going concern, to Pentafour Communications Ltd PCL. The board of directors of both the companies are meeting on December 10 to consider the proposal and also convene the extra-ordinary general meeting EGM.
PCL plans to fund this acquisition through a mix of ADR or GDR or equity to the tune of 75 million. Three firms including Price WaterhouseCoopers have been appointed to value the software division.
Bourses have reacted positively as far as PSEL was concerned. At the BSE opened at Rs 889.90 and hit the upper circuit breaker of Rs 958.70 when the news hit the market. It finally closed at Rs 958.15 after a little over three million shares were traded.
PCL, on the other hand, witnessed a mixed fortune. It opened the day at Rs 302.00 as against the previous close of Rs 297.60. After touching an intra-day high of Rs 312.00, it declined to a low of Rs 295.10 before closing at Rs 306.45. About 1.01 lakh shares changed hands during the day.
According to media reports, PSEL has orders to the tune of 90 million in multi-media business and 70 million in software development business to be executed in the next 15 months. The company has already disclosed plans to bring out an enhanced version of its enterprise product and also launch pentabank8217; a web-based banking solution product. PSEL is also setting up a 20,000 sq ft development centre exclusively for e-commerce and is to be inaugurated in January.
