Expect Boston Comm. acquisition to be EPS accretive, acquisition to reflect in books from Q3: Megasoft

Megasoft is to buy Boston Communication for $ 65 million. GV Kumar, CEO of Megasoft said Boston Communications is a profit making company and has a good clientele. It has clients like Sprint, Telefonica. Its revenue was about $ 70 million and we expect Boston Comm. acquisition to be EPS accretive.

Basically it is a listed company in the Nasdaq. So we need to file tender offer to Boston shareholders before this month end. For $ 65 million we are planning to acquire 100% stake. We think the price we are offering is attractive and we expect the deal to go through successfully. Boston Comm. acquisition will reflect in books from Q3, Kumar said.





KEC International wins two projects in the Middle East worth Rs 176 Cr

KEC International has bagged two contracts in Riyadh, Saudi Arabia and Abu Dhabi, UAE valued at Rs 176 crore.

The larger value contract comes from the Saudi Electricity Company based in Riyadh, Saudi Arabia and is worth US$ 23.4 million (Rs 95 crore). This work involves supply, erection, installation and commissioning of 380 KV transmission line comprising a total distance of 53 kms on the outskirts of Riyadh.

The Abu Dhabi project, worth US$ 20 million of Rs 81 crore, is from the Abu Dhabi Transmission and Despatch Company (TRANSCO). This project, also won via competitive bidding process, involves the supply, erection, installation and commissioning of 400 KV transmission lines from Taweelah sub station to Yas Island and Bahia sub station to Yas Island - a total of 40 kms.

"These are significant wins for us. Coming, as it does, immediately on the back of our largest single value contract worth Rs 380 crore in Kazakhstan, is indeed a delight," said Mr. Ramesh Chandak, Managing Director of KEC Intl.





Arvind Mills: Has neither sold any land nor has any plans to sell land in near future

With reference to the market rumours regarding sale of land by the company, Arvind Mills has clarified that it has neither sold any land nor has any plans to sell land in near future.

There were reports in the newspapers earlier this month that Reliance Retail was to buy Arvind Mills 300 acre land in Ahmedabad.






Megasoft to buy Boston Communication for $ 65 mln

Megasoft and Boston Communications Group Inc has announced a definitive agreement for Megasoft to acquire Boston Communications Group, Inc., for $ 3.60 per share of bcgi common stock, in cash, for an expected aggregate purchase price of approximately $ 65 million. The .60 per share price represents a premium of approximately 120 percent over bcgi's average closing share price during the 30 days ended July 06, 2007.

Under the terms of the merger agreement, a subsidiary of the Company will commence a tender offer to acquire all of the outstanding shares of bcgi common stock for .60 per share in cash. The offer is expected to commence on or before August 01, 2007, and will expire at midnight on the 20th business day following and including the commencement date, unless extended in accordance with the terms of the merger agreement and the applicable rules and regulations of the Securities and Exchange Commission ("SEC").

The Board of Directors of the Company and bcgi have unanimously approved the definitive agreement. The Board of Directors of bcgi recommends that shareholders tender their shares into the tender offer. Members of bcgi's Board have agreed to tender their shares into the offer.

"This transaction creates significant value for Megasoft shareholders and expands our market and technology leadership in what is one of the most exciting areas of our industry's transformation: convergent telecom," said GV Kumar, CEO and managing director of the Company "Megasoft and bcgi link technology with services, thereby creating an exceptional platform to add next-generation, high-value products and strategically position the company for future growth."

The tender offer will be conditioned upon, among other things, approximately 83% of BCGI's shares being tendered in the offer based on the number of current shares and is expected to be completed during the third quarter of 2007, subject to customary regulatory approvals and other conditions. The transaction is not subject to a financing contingency. There can be no assurance that the transaction will be approved or consummated.






HCL Technologies targets big deals in Japan - Inks partnership with Konica Minolta

HCL Technologies has announced the opening of an Offshore Development Centre in Chennai with Konica Minolta Group (KM), a global corporation in the field of imaging from input to output, to provide software services for KM's Multi Function Peripherals (MFPs), printers and medical equipment business lines. The software services provided by the Company will support the Japanese language in order to communicate accurately with KM's researchers.

The contract is of 3 years duration and extendable thereafter every year in which the 5 business Companies of KM will outsource Product Engineering work to the Company. Presently for Konica Minolta Medical & Graphics, Inc. (KMMG), the Company is developing, maintaining, globally supporting and performing R&D for the application and embedded software of their Computed Radiography (CR) product line. While with Konica Minolta Business Technologies, Inc. (KMBT), the Company will be developing, maintaining and performing R&D for the application and embedded software of their complete range of MFPs and printers.

Mr. Selvatharasu Sadagoparamanujam - President and Representative Director - HCL Japan Ltd, (a wholly owned subsidiary of the Company) commented on the deal: "After successfully foraying into the US and other geographies, Japan is the next market that HCL is looking on to sign big partnerships such as our agreement with Konica Minolta. HCL expects around US $ 30 million worth of business in 3 years through this deal. This partnership with KM is a perfect fit in our Life Sciences (Equipment) strategy and will boost our new micro-vertical for Printers and MFPs."

"Our capabilities for sustaining long term relationships have been among the best with partnerships with Companies like Toshiba, NEC, CISCO etc. Coupled with this, HCL is also a leader in the Technologies and Product development domain, which will enable us to establish a successful long-term partnership with KM" he added.

The Company's Japan Business Units based in Chennai and Noida will provide the necessary Japanese support for fulfilling this partnership. The Company will develop software for Konica Minolta's innovative products to be distributed to the global market.





DCB seeing good buying; Tatas to pick up 4.6% stake in the bank

DCB has touched an intra day high of Rs 115.40 and an intra day low of Rs 110.20. Currently, the share is quoting at Rs 113.10, up Rs 3.15, or 2.86%. It is trading with volumes of 291,350 shares, compared to its 5-day average of 620,161 shares, an decrease of -53.02%.

The Tata group will pick up 4.6% stake in DCB through its newly-formed subsidiary Tata Capital. The board of DCB today approved raising up to Rs 310 crore by issuing preferential shares to five investors, including Tata Capital, at Rs 105 per share. This would form 16.6 per cent of the post-issue capital of the bank. The other investors who will pick up upto 4.6% stake in the Aga Khan Fund for Economic Development (Akfed) promoted bank are UAE-based Al Bateen Investment Co, GRA Finance Corp, Mauritius, DCB Investments, Mauritius and India Capital Opportunities 1, Mauritius.

DCB Investments is a special purpose vehicle floated by Schroders, a UK-based asset management company, to invest in the private sector bank. The preferential allotment is subject to the approval of the bank’s shareholders and the Reserve Bank of India (RBI).

If the RBI approval is not received for any of the proposed investor(s), the board of the private sector bank will have the power to identify and negotiate with one or more investors or with other interested investors for selling the stake and will secure the RBI’s special approval for the same, said the bank.

“Tata Capital’s investment is a financial investment at this particular point. Over a period, if there is an opportunity to do something together we will look at it. We have a lot of synergies. There are financial services where only a bank can operate and similarly they can bring value through products like mutual funds, which we don’t offer. However, there is no conditionality or commitment at this point in time,” said Gautam Vir, managing director and chief executive officer, DCB.

The majority of the Tata group’s stake would be held by Tata Capital. The group is yet to finalise on the other companies which would hold the remaining stake, said a senior DCB official.

The bank's capital adequacy ratio, which is currently at 10.5% will improve to 18% after the capital infusion.
The bank's net worth will increase to Rs 635 crore after the issue. The regulatory requirement is Rs 300 crore.

The promoter's stake in DCB will fall to 24.8% from 29% after the preferential allotment. The RBI had asked the bank to pare down the promoter’s stake to 10% by September 2007. “We will go step by step. We will discuss with the RBI on future course of action. Reducing the promoter’s stake to 10% will require us to raise a lot of capital,” said Vir. Tata Capital marks re-entry into the finance business after two years following controversies over then finance arm Tata Finance. The company was subsequently merged with Tata Motors.

Tata Capital will offer services in capital market, merchant banking, housing finance, private equity, and vehicle and retail finane. Tata Sons had said that its other financial services companies including Tata AIG Insurance, Tata Asset Management Co and Tata Investment Corporation, would remain separate entities.

However, sources said a merger of these companies under one umbrella could not be ruled out.