Flextronics parent to acquire balance 30.3% holding in Flextronics Software Systems Ltd (FSS), previously known as Hughes Software Systems Ltd.

5th May 2005: Singapore-based Flextronics International, a leading electronics manufacturing services company, plans to acquire the remaining holding in its Indian unit Flextronics Software Systems Ltd (FSS), previously known as Hughes Software Systems Ltd, for close to Rs 600 crore. Flextronics currently owns 69.7% of FSS through its wholly-owned subsidiary, Flextronics Sales & marketing (L-A) Ltd.

Flextronics is prepared to acquire the outstanding shares offered to it at Rs 575 per share, a company release said today. This price represents a premium of approximately 9.7% to the average of the closing prices of the FSS shares on the National Stock Exchange in the six months preceding the date of this settlement and a 4.5% premium to the closing price of Rs 550 per share on May 3 -- the last trading day before the delisting proposal was communicated to the board of directors of FSS.

The open offer is subject to all requisite shareholder and regulatory approvals, including the number of shares required for delisting, the release said. The release quoted Flextronics chief executive officer Michael Marks saying: "Completion of this transaction will enhance our operating flexibility, streamline our service offerings in this area and provide an attractive exit opportunity to public shareholders. However, if we find that the ultimate terms of this proposal are not acceptable to Flextronics, we will examine alternative strategies for our Indian operations."

The release added that the outstanding shares of FSS will be acquired in accordance with the delisting guidelines set forth by capital market watchdog Securities and Exchange Board of India (Sebi) through a shareholder-led reverse book build process.

DCM Board approves proposal to merge DCM Realty Investment & Consulting Ltd with itself

4th May 2005: DCM Ltd has informed BSE that the Board of Directors of the Company at its meeting held on May 02, 2005, has approved the proposal to merge DCM Realty Investment & Consulting Ltd (a 100& subsidiary of the Company) with the Company.

Oracle acquires Hexaware's India centre

4th May 2005: Oracle Corporation has exercised its option and acquired the India Service Centre (ISC), located in Bangalore, following its acquisition of PeopleSoft's operations across the world. The Centre was set up under the terms of a Build, Operate and Transfer (BOT) agreement between Hexaware and PeopleSoft, signed in April 2003, Hexaware said in a release here today. The transfer is expected to be completed in around 180 days and would occur in late October 2005, it said.

After the integration, the Centre in Whitefield, Bangalore, and the employees hired for and dedicated to Hexaware-PeopleSoft India Software Centre, would become employees of Oracle. In the last fiscal, ISC contributed 12.2 per cent of Hexaware's revenue, it added. The ISC was set up to focus on support and development of new releases, new development and for client implementation services of PeopleSoft enterprise solutions, for PeopleSoft and their customer's worldwide, it said.

After the integration, Hexaware would continue its relationship with Oracle as a service partner and the transfer does not affect in any way the current size and projected growth of Hexaware's PeopleSoft Services Practice. The company has over 750 professionals in its PeopleSoft practice, including human resources, financial and customer relationship management, among others, it said. Hexaware Executive Chairman Atul Nishar said that "ISC, during its two years of operations by Hexaware, delivered significant time-to-market and cost-savings to PeopleSoft and serves as a model for global companies".