HGS clears share entitlement ratio for acquisition of NXT DIGITAL’s digital, media businesses
New Delhi: Hinduja Global Solutions (HGS) board has approved share entitlement ratio of 20:63 for acquisition of the digital, media and communications business of NXTDIGITAL, the company said on Friday. The acquisition of NXTDIGITAL (NDL’s) business undertaking will not entail cash outflow from HGS.
HGS will issue 20 equity shares of Rs 10 each (post issue of bonus equity shares) for every 63 equity shares of NDL of Rs 10 each fully paid up, the company said in a statement.
The share entitlement ratio was determined by independent valuers KPMG Valuation Services LLP and SSPA and Co, Chartered Accountants, and is based on post-bonus equity share capital of HGS.
The proposed acquisition of NDL’s digital, media and communication business undertaking will be an all-stock deal and will not entail cash outflow from HGS.
The transaction is subject to shareholders’ nod and all regulatory approvals, including NCLT, which is expected to take around 6-8 months, the company informed.
On completion of the transaction, NDL’s digital, media and communication business undertaking would operate as a division of HGS.
“The acquisition of NDL’s business opens up a direct-to-consumer practice for HGS in India and provides a huge opportunity for the company to participate in the rapidly growing Digital India initiative,” the statement said.
The transaction is expected to fuel the new digital, media and communication business’ expansion plans in the digital space, as it looks to leverage analytics and automation to grow its portfolio across video, broadband, OTT and Wifi services.
HGS’ equity share capital was Rs 20.90 crore, as on December 31, 2021.
Upon completion of the 1:1 bonus, the equity share capital would be Rs 41.80 crore. On the Scheme of Arrangement with NDL becoming effective, the equity share capital of HGS would be Rs 52.48 crore.
Partha DeSarkar, Executive Director and Group CEO of HGS said that the company is evolving into a digital-led customer experience transformation firm, with a focus on building deep business-to-business and business-to- consumer domain knowledge in specific industries, especially the Telecom, Media and Technology (TMT) vertical.
“We believe that HGS’ TMT and NDL’s digital, media and communication businesses have strong synergies, and we can leverage each other’s experience, talent, expertise and credentials to grow faster and expand further, globally and in Asia,” DeSarkar said. PTI MBI RUJ RUJ
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