Partner Channels: Bill Pay | Health | IT Education | Jobs | Technology | Travel
July 6, 2001
|
|
|
|
|
|
||
|
Channels: Astrology | Broadband | Contests | E-cards | Money | Movies | Romance | Search | Wedding | Women Partner Channels: Bill Pay | Health | IT Education | Jobs | Technology | Travel |
||
|
|
||
|
Home >
Money > Business Headlines > Report July 6, 2001 |
Feedback
|
|
|
ICICI exits Wipro's net ventures armV Phani Kumar & Anusha Subramanian ICICI has exited from Wipro Net, the Internet ventures arm of Wipro, by divesting its eight per cent stake in the company. With this, Wipro's stock in Wipro Net, which it recently merged with itself, has gone up to 100 per cent from the earlier 92 per cent effective from June 1, 2001. ICICI has exited from the venture by exercising the put option on the $21.23 million it had extended to Wipro Net for purchasing 1.79 million shares of the company through a share purchase agreement signed on December 28, 1999. On the same day, ICICI had signed an option agreement with a put or call option, which could be exercised between 13 and 18 months of signing the deal. In the same connection, Azim Premji, chairman and managing director of Wipro, had also pledged 2.06 million of his shares in Wipro, which now stand redeemed. Wipro's official spokesperson said: "ICICI had exercised the put option and has sold the shares back to Wipro. Accordingly, Wipro now owns 100 per cent of stock in Wipro Net post-June 1, 2001." ICICI had in 1999 purchased 1.79 million shares of Wipro Net at $11.85 per share in a Rs 994 million deal. According to the option agreement signed, ICICI returns would be computed at 13.75 per cent, compounded quarterly, in case it exercised the put option. On the other hand, Wipro would have paid 14.25 per cent interest, compounded quarterly, if it had chosen to exercise the call option. Wipro Net was originally formed as a 55:45 joint venture between Wipro and KPN Telecom. Subsequently, Wipro acquired the 45 per cent stake of KPN Telecom for Rs 1.09 billion to increase its stake to 92 per cent. Wipro Net, which was merged with Wipro with on April 1, is currently focussed only on the corporate segment. The retail Internet service provider business, which focuses on household and small businesses, has been transferred to NetKracker Ltd in exchange for 49 per cent of the equity and certain convertible preference shares of NetKracker. For the year ended March 31, 2001, which was Wipro Net's second year of operations, the company posted a net loss of Rs 64 million on total sales of Rs 538 million. Powered by YOU MAY ALSO WANT TO READ:
|
||||
