Accel Limited Completes Acquisition Of British Telecom Stake In Accel Frontline Limited

29 August 2011

Accel Limited Becomes Majority Shareholder
Accel Limited Holds 70.44% Stake Post Buyout
Buyout In Line With Strategy To Consolidate Group Businesses
Synergies To Deliver Higher Value To Customers And Investors

Abu Dhabi: Accel Limited, a holding company focused on Information Technology and Media, announced that it has bought out the 51% stake held by British Telecom in Accel Frontline Limited.

On July 27, 2011, Accel Limited and BT Frontline Pte Limited (wholly owned subsidiary of British Telecommunications Plc) entered into a definitive agreement for executing the transaction. Under the definitive agreement, Accel Limited intended to buy out the entire 51% stake held by British Telecom in Accel Frontline Limited. The off-market transaction was executed and completed on Aug 05, 2011. Post the buyout, Accel Limited holds 70.44% stake in Accel Frontline Limited.

N R Panicker, Chairman, Accel Limited said, "Being the original promoters of Accel Frontline Limited, we understand the dynamics of the business and we believe there is tremendous growth potential in the company. The management thrusts a lot of faith and commitment in the company and has mapped out definitive plans to grow Accel Frontline Limited multi-fold. As a first step, we are planning to consolidate similar group businesses. Synergies arising from this process will reduce costs, expand margins and deliver more value to our customers and investors. We are confident that such initiatives will put the company on the global footprint and make Accel Frontline Limited a truly global IT Services Company."

Accel Limited is the founding promoter of Accel Frontline Limited. In 2004, Frontline Technologies Corporation Limited acquired a 42% stake in the then Accel ICIM. The company was later named Accel Frontline Limited. In 2008, British Telecommunications Plc acquired 100% of Frontline Technologies Corporation Limited. Thereafter, Accel Limited sold 9% of its stake in Accel Frontline Limited to BT Frontline Pte Limited thereby making Accel Frontline Limited a subsidiary of BT Frontline Pte Limited.

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About Accel Limited:
Accel Limited is a holding company focused on Information Technology and Media. The group companies include Accel Frontline Limited, Accel Transmatic Limited, Accel Frontline Services Limited, Accel Media Ventures Limited, Accel Systems Group and Accel IT Resources Limited. The group companies operate in the domains of System Integration, Technology Services, Software Development, Business Process Outsourcing, Training Services and Media. Accel's operations are spread across 59 cities in India and internationally in countries like Singapore, Japan, Middle East and the United States.