Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Mohan Marette who wrote (9991)	12/10/1999 1:10:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 12475

Pentafour to enter ISP business-Board approves raising $75 mil via ADR/GDR 10-12-1999 22:47:46 Indian software education and networking firm Pentafour Communications Ltd plans to enter the Internet service provider business, its chairman said today. "The idea is to use our existing network of 100 training centers in the country to offer our students access and use it as part of our training and later open it up for local schools and colleges," V. Chandrasekaran told a news conference. The firm will invest about Rs50-70mn to set up the infrastructure for this venture. Earlier today, the firm`s board of directors approved the take over of the software division of group company, Pentafour Software & Exports Ltd. The board also cleared a proposal to raise $75mn through issue of either American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs) or through a private placement. Chandrasekaran said the money would be partly utilized to fund the cost of acquiring Pentafour Software`s software business. "The details of payment, of whether it should be cash and stock or other options are being worked out and at an appropriate time the money will be raised," he said. Meanwhile, the company is in talks with Singapore Telecommunications Ltd for its Internet broadcasting plans. "SingTel is interested in working with us and we are looking at buying bandwidth from them for which discussions are on," chairman and managing director V. Chandrasekaran told a news conference. He said the firm would commence test broadcasting of a live music event on December 11 at its site www.namtv.com. Chandrasekaran also said the firm was planning to launch an entertainment portal in 2000. The board of Pentafour Software today cleared the proposal of transferring the software division to Pentafour Communications, according to a notice issued to the Madras Stock Exchange by Pentafour Software. In a statement the company said, Pentafour Software would hive-off of its business software segment, including the overseas operations to Pentafour Communications Ltd." The company expects its stock valuations to climb following its move to hive off the software division and focus more on the multimedia business. "A lot of shareholders, foreign institutional investors and even Coopers and Lybrand, who did a business valuation for us, had suggested that a separation of the two businesses would improve our valuations," V. Chandrasekaran said. Pentafour shares gained 8% today on the Bombay Stock Exchange, closing at Rs1247.95, up Rs92.40. Source: Reuters