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Wednesday, Feb 02, 2005

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Corporate - Restructuring

Hinduja TMT to spin off media biz

Our Bureau

Mumbai , Feb. 1

HINDUJA TMT (HTMT) has decided to demerge its media business into a separate entity.

The board, which approved the proposal on Monday, has authorised a committee of directors to work out a detailed scheme.

The proposal presented by the management envisages two debt-free listed companies with mirror image shareholding. Information technology businesses, IT subsidiaries and the main financial investments, such as in Fascel Ltd, will be part of the technology company. Media (film content, cable TV distribution network) and broadband (high-speed Internet and related value-added services) will be the functions of the demerged entity.

The board also authorised the management to appoint consultants for formulating the scheme and fulfilling statutory compliance and directed it to submit its final recommendation along with the structure of the scheme at the earliest.

"The restructuring exercise will not only unlock value for the shareholders in the short term; the new entities will achieve their individual business objectives faster and better than before, thereby creating further value for the shareholders in the long term," HTMT said in a news release quoting Mr K. Thiagarajan, Managing Director & CEO.

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