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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (4886)	7/1/1999 10:53:00 PM
From: Mohan Marette	Read Replies (2) \| Respond to of 12475

Global Tele ( gtl.co.in to sell major stake in its e-business Mumbai, Jun 30: Global Tele-Systems is planning to sell up to a majority stake in its e-commerce and Internet services subsidiary, Global Electronic Commerce, for a price of $75 million to strategic and financial investors. The mandate for the sale of the stake has been given to Mumbai-based Dutch investment bank, Rabo India Finance (P) Ltd, and the transaction is expected to be completed by the end of September. The proceed from the deal will be utilised to finance Global Electronic Commerce's entry into e-commerce and net-related services in internet, e-commerce, messaging and managed-network services to corporates in India. Global Electronic has been in the business since the last three years and has managed to cultivate a customer base of 6,500 subscribers, most of whom are corporate clients. The company has an equity base of $53 million and is planning to finance its future investments with a 1:3 debt equity ratio. It operates a digital data network and is focused on providing e-commerce and messaging services to companies throughout India. Global E-commerce has been paying a lot of attention to the business-to-consumer and business-to-business segments of the e-commerce market. Also on cards is a plan to extend Internet access to the retail end of the market with the help of franchise network. As per plans, Global E-commerce would provide the data backbone, technical support and a nationwide marketing thrust to its franchisees as per a revenue sharing agreement. The company also plans to strengthen its market presence through a host of tie-ups with global majors, under which it would carry in-bound international data traffic on its network. Global E-commerce has already entered into agreement with two international data carriers and traffic originating on their network and terminating in India would be carried through the global network. -(Indian Express)