HGS Approves 20:63 Share Award Ratio for Business Acquisition of Nxtdigital

The Hinduja Global Solutions (HGS) Board of Directors has approved a 20:63 equity award ratio for the acquisition of the digital, media and communications business of Nxtdigital (NDL).

HGS will issue 20 participating shares of Rs 10/- each (post issuance of free participating shares by HGS) for 63 participating shares of NDL of Rs 10/- each fully paid.

The share entitlement ratio was determined by independent valuators KPMG Valuation Services LLP and SSPA & 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 will be subject to shareholder approval and all applicable regulatory approvals, including NCLT, which is expected to take approximately 6-8 months. Upon completion of the transaction, NDL’s digital, media and communications business enterprise will operate as a division of HGS.

According to HGS, as of December 31, 2021, its share capital was Rs 20.90 crore. Upon completion of the 1:1 bonus, the share capital would be Rs 41.80 crores. When the Scheme of Arrangement with NDL comes into effect, the share capital of HGS would be Rs 52.48 crore.

“HGS is evolving into a digitally-driven customer experience transformation company with a focus on gaining in-depth knowledge of B2B and B2C domains in specific industries, especially the vertical telecommunications, media and technology (TMT). We believe that 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 we expand further, globally and in Asia,” said Partha DeSarkar, Executive Director. and CEO of HGS Group.

The acquisition of NDL’s business opens up a direct-to-consumer practice for HGS in India and offers the company the opportunity to participate in the growing Digital India initiative.

According to the company, the proposed transaction, once completed, will fuel new plans to expand digital, media and communications businesses in the digital space as it seeks to harness analytics and automation to grow its portfolio. of video, broadband, OTT and WiFi services. .

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Sallie R. Loera