Pentafour to hive off unit

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.

PSEL board will also consider a restructured business plan with more focus on multi-media. Multi-media currently contributes 55 per cent of the total turnover of PSEL with the software development business accounting for the balance.

The company has posted a turnover of Rs 317 crore for the six-month period ended September 30, 1999. During 1998-99, PSEL had clocked a turnover of Rs 530.78 crore and a PAT of Rs 119.12 crore.