Date:09/08/2006 URL: http://www.thehindubusinessline.com/2006/08/09/stories/2006080904280400.htm

Back Sasken seeks to use IPO funds for buys

Our Bureau

Bangalore Aug. 8

Sasken Communication Technologies Ltd is seeking the shareholders' approval to revise the terms of the section `Objects of the Issue' of the company's prospectus and utilise the IPO proceeds to fund the acquisition of Botnia Hightech Oy.

The shareholders approval is being sought through a postal ballot, the company said in a notice to the stock exchange.

Sasken recently signed an agreement for the acquisition of Finland-based Botnia Hightech Oy and its two subsidiaries for 35.5 million (about Rs 210 crore) in an all-cash deal. The Kaustinen-based Botnia provides wireless R&D, hardware, software, mechanical design and testing services to mobile handset vendors.

Sasken had raised Rs 130 crore through the IPO last year and after netting issue expenses, the company was left with Rs 124 crore. "We are just expanding the options available through this ballot," said Ms Neeta Revankar, CFO, Sasken.

The company expects to part finance the Botnia deal from internal accruals, besides raising $50 million in fresh capital.