Merger of Media & Telecom Businesses Under Hinduja Finance
Thursday 28 September, 2000
The shareholders of Hinduja Finance, in the extraordinary
general meeting held on 28th September, 2000, unanimously
approved the mergers of Richman Investrade, Hinduja Telecom
and Melody Trading with the company. These mergers would lead
to the company acquiring majority control in the group's media
businesses (IndusInd Media & Communications Ltd., Cable
Video India Ltd, IndusInd Entertainment Limited) and a significant
stake in the group's telecom The shareholders of Hinduja Finance,
in the extraordinary general meeting held on 28th
business (Fascel Ltd). The net worth of Hinduja Finance will
increase from Rs. 149.09 Crores to Rs. 323 Crores
IndusInd Media & Communications Ltd (IMC) has over 4 million
cable subscribers. Recently, Intel has invested US $ 49.23
million for an effective stake of 3.3% of IMC giving it a
valuation of US $ 1.5 billion. Cable Video India Limited has
the largest Hindi movie library in the country with over 1800
movies under its fold. IndusInd Entertainment Ltd has a bouquet
of city specific cable channels covering major cities and
is a specialist developer of city specific content. Fascel
Ltd. provides cellular telephony services in Gujarat state
and is the single largest state circle operator in India.
In addition, Richman Investrade merger will also make Hinduja
Finance the owner of World/Asian satellite rights for 260
The Internet business is already under Hinduja Finance through
its subsidiary In2Cable.Com India Ltd. The company has recently
completed the merger process of Ashok Leyland Information
Technology Ltd., the Group's IT company with itself.
Mr. S. Solomon Raj, Vice Chairman, Hinduja Finance said "These
mergers will facilitate implementation of convergence strategy
of HF and thus add more value to the shareholders. The company
also proposes to change its name to reflect its new positioning.
This is in line with the recommendations of Andersen Consulting
who have advised that Hinduja Finance be re-positioned as
a Operating Information Technology company and an active parent
to the Group's affiliates in the Technology, Media and Telecom
Sectors providing strategic direction."
The Management of Hinduja Finance has selected "Hinduja
TMT Limited" as the new name for the company from the
numerous entries received in a naming contest held among over
1000 employees under the Hinduja Finance Group.
The company has initiated the process for
changing its name and would approach Reserve Bank of India
and other relevant authorities for obtaining clearance shortly.
For details please
Ms. Nina Mamnani,
Vice President (Corporate Communications)
Phone No. 4960707 Fax: 4974208