The Hindu : GTL to buy Redington group

Online edition of India's National Newspaper
Tuesday, Feb 25, 2003

Business

Business

GTL to buy Redington group

By Our Staff Correspondent

MUMBAI FEB. 24. GTL, a leading network engineering and IT services company, has announced that it has forged an alliance with the Redington Group and the two have agreed to consolidate their businesses.

To implement the consolidation, the GTL group proposes to acquire the Redington group comprising Redington India, Redington Pte. Ltd., Singapore, and Redington Gulf FZE, Middle East, for a consideration of $95 million in a cash-and-stock deal. Out of this, $45 million is payable by stock swap and the balance $50 million in cash. This consideration has been based on the valuations conducted by Deloitte Haskins & Sells and ICICI Securities and Finance Company. Consequently, the Redington group will become a significant shareholder in GTL's equity. The swap ratio is also being worked out by the valuers.

The estimated revenue of the Redington group for the year ending March 2003 is expected to be over Rs. 2,500 crores. Redington's major business divisions are systems, package software and services.

It has deployed CRM tools, automated its sales force and initiated steps in providing proactive customer support. Redington in India has 28 branches and 36 service locations.

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