| Hinduja Finance - ALIT Merger
Thrust towards 'TMT' (Technology, Media and Telecom)
February 18, Mumbai - Hinduja Finance Board today approved the
merger of Ashok Leyland Information Technology Ltd. (ALIT) with
Hinduja Finance (HF). 0n the basis of valuations carried out
by A.F. Ferguson & Company and Shah & Company, the ratio of
shares has been fixed at one share of Hinduja Finance (HF) for
twenty shares of Ashok Leyland Information Technology Ltd. (ALIT).
The equity of HF will increase nominally by about Rs.1 crore
to Rs.23.99 crores. The Company is almost debt free and has
ALIT provides software services globally with principal focus
on E-commerce and Web based applications, ERP solutions, Banking
& Finance Software Solutions, Euro conversion, Client Server
applications, Telecommunications , Health Care, and Insurance
ALIT's international Clientele includes major U.S. Companies
like Time Warner, Citi Group, Union Bank of California, Seer
Technologies, Platinum Technology Inc., and Total System Services,
in addition to several others spread over USA, In Europe - FIAT
Group, Italy. It also has a wholly owned U.S. Subsidiary, ALIT
Inc., with offices in New York & San Fransico and proposed offices
in Chicago, Boston & Seattle.
At its last Board Meeting in January, the Directors had approved
acquisition at par of 51% equity in the Group promoted IN2CABLE.COM
(India) Pvt. Ltd. This company delivers internet on cable using
the extensive cable networks of IndusInd Media and Communications
Limited, which provides India's largest organised cable TV network
to 4 million homes, with the first hybrid fibre co-axial backbone.
It has already started delivery of internet on cable on a trial
basis in Mumbai and will shortly provide service in other centres
such as Bangalore, Delhi, Ahmedabad & Hyderabad. Negotiations
are on with an international partner for its Joint Venture in
this sector to be announced shortly.
Mr. Ashok P. Hinduja, Chairman of Hinduja Finance, articulated
his vision for the company to focus on 'TMT' (an acronym coined
by him for Technology, Media and Telecom). The move is to position
the company's focus to be the leader of a sector comprising
of I.T., Internet access and content, E- commerce, Infotainment
media and Telecom. The technological convergence in these areas
has led to a global paradigm shift to the new E-economy.
Mr. Hinduja stated that the company should take full advantage
of the unique synergies that exist within the Group to catapult
itself to the top of the emerging E- economy and the knowledge
based business sector in India to further enhance shareholder
value. The merger with ALIT is the starting point for HF to
optimise its participation in the convergence opportunities.
HF will look at further acquisitions in these sectors for rapid