NXTDigital board approves transfer of media biz to Hinduja Global Solutions Ltd.
The acquisition of NXTDigital’s business undertaking will be an all stock deal and not going to entail cash flow from Hinduja Global Solutions Ltd.
NXTDigital board of directors has approved the share entitlement ratio of 20:63 for the acquisition of its digital, media and communications business by Hinduja Global Solutions Ltd. The exchange ratio is based on the comprehensive valuation exercise carried out and recommended by two independent valuers.
According to the valuation is done by M/s SSPA & Co., and M/s KPMG Valuation Services LLP, Chartered Accountants each shareholder of NDL holding 63 equity shares will receive 20 fully paid equity shares (post bonus) of the face value of Rs 10 per share of HGSL.
These allotments will be over and above the existing shares of NDL held by the shareholders so that the existing shareholding in NDL can be retained. The acquisition of NXTDigital’s business undertaking will be an all-stock deal and not going to entail cash flow from Hinduja Global Solutions Ltd.
The proposed scheme is subject to shareholders, regulatory and National Company Law Tribunal (NCLT) which may take about six to eight months. This transaction is said to help NXTDigital in its further growth and expansion.
“The proposed transfer, once completed, will elevate our expansion plans in the digital space, as we look to harness analytics and automation to grow our digital portfolio across video, broadband, OTT, WIFI and other services,” said Vynsley Fernandes, Managing Director and CEO of NXTDigital.
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