The board of directors of Hinduja Global Solutions (HGS) has approved a 20:63 equity allocation ratio for the acquisition of NXTDIGITAL’s digital, media and communications business, the company announced on Friday.
The acquisition of the business enterprise of NXTDIGITAL (NDL) will not result in a cash outflow from HGS.
HGS will issue 20 Equity Shares of Rs.10 each (after issuance of Free Equity Shares) for 63 NDL Equity Shares of Rs.10 each fully paid, the company said in a statement.
The share entitlement ratio was determined by independent valuators KPMG Valuation Services LLP and SSPA and Co, Chartered Accountants, and is based on the share capital after bonus of HGS.
The proposed acquisition of NDL’s digital, media and communications business will be an all-stock transaction and will not result in a cash outflow from HGS. The transaction is subject to shareholder approval and all regulatory approvals, including NCLT, which is expected to take approximately 6 to 8 months, the company advised.
Upon completion of the transaction, NDL’s digital, media and communications business enterprise will 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 growing Digital India initiative,” the statement said.
The transaction is expected to fuel the new digital, media and communications company’s expansion plans in the digital space as it seeks to leverage analytics and automation to grow its portfolio of high-end video services. speed, OTT and Wifi.
The share capital of HGS was Rs 20.90 crore, as of December 31, 2021. Upon completion of the 1:1 bonus, the share capital would be Rs 41.80 crore. By the time the Scheme of Arrangement with NDL becomes effective, the share capital of HGS would be Rs 52.48 crore.
Partha DeSarkar, Executive Director and CEO of HGS Group, said the company is evolving into a digital-focused customer experience transformation company, with a focus on gaining deep insight of the business-to-business and business-to-business domain in specific sectors, in particular the Telecom, Media and Technology (TMT) vertical. “We believe the digital, media and communications businesses of HGS and NDL 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.
(This story has not been edited by the Devdiscourse team and is auto-generated from a syndicated feed.)