Accel acquires 51% stake of British Telecom in Accel Frontline

CHENNAI: Information Technology and media firm Accel Ltd today said it has acquired the 51 per cent stake held by British Telecom for Rs 49.9 crore to become a majority shareholder in Accel Frontline Ltd.

Last month, the city-based Accel Ltd and BT Frontline, a subsidiary of British Telecommunications, entered into a 'definitive agreement' for executing the transaction.

As per the agreement, Accel Ltd intended to buy out the entire 51 per cent stake held by British Telecom. The off-market transaction was "executed" and "completed" on August 5, it said in a statement.

With this buyout, Accel Ltd holds a majority 70.44 per cent stake in Accel Frontline Ltd, it said.

"Being the original promoters of Accel Frontline Ltd, we understand the dynamics of the business and we believe there is tremendous growth potential in the company", Accel Ltd Chairman N R Panicker said.

Accel Limited is the promoter of Accel Frontline Limited. In 2004, Frontline Technologies Corporation acquired a 42 per cent stake in Accel ICIM which was later renamed 'Accel Frontline Limited'.

In 2008, British Telecommunications Plc acquired 100 per cent stake in Frontline Technologies Corporation Limited. Subsequently, Accel Limited sold 9 per cent stake in Accel Frontline Limited to BT Frontline thereby becoming its subsidiary.