Bt To Up Pie In Joint Venture With Mahindra

The moves comes following the guarantee of business by BT up to Rs 725 crore spread over a period of three years.

In consideration of the increase in business, MBT will allot 5.05 million shares of Rs 2 each par value to BT, which will increase its stake to 43 per cent.

The shares are to be allotted as per the pricing formula prescribed under the applicable guidelines, said an MBT release.

Under the pact between the two companies BT has assured minimum business worth POUNDS STERLING35 million (worth Rs 235 crores/$53 million at current rates) each year for the period beginning in the current fiscal, extending up to March 2003.

 

This is a jump of around 66 per cent over Pounds Sterling 63.15 million business that BT had placed with MBT during the last three years. In the last fiscal, MBT-BT business amounted to pounds sterling 28 million.

David Chaplin, director representing BT on the board of MBT, said in a press release, " MBT was BT's first joint venture in the Indian sub-continent and we are tremendously proud of being a part of its success in the last 13 years. It is very fitting that this relationship has grown and flowered and today as we move one step closer, we look forward to a very strong future together".

Ulhas N Yargop, president, information technology (IT) sector, Mahindra Group, said "This landmark achievement for MBT, the flagship company in our IT sector, further cements the strong ties between BT and the Mahindra Group and will create substantial value for the share holders of MBT".

Heavy business will primarily flow from growth in IT services now rendered by MBT to BT.

MBT being the largest Indian-managed software operating unit in the UK, BT is accelerating outsourcing of work for offshore operations and end to end programme management.

MBT's services to BT include advanced communication engineering and information systems engineering and BT affiliates like BT Syncordia Solutions, BT Cellnet and Syntegra.