NXTDIGITAL board approves transfer of “digital, media & communications” business undertaking to Hinduja global solutions
Biznextindia : The Board of Directors of NXTDIGITAL Limited at its meeting held earlier today, approved the proposed Scheme of Arrangement between NXTDIGITAL Limited (NDL) and Hinduja Global Solutions Limited (HGSL) and their respective Shareholders – for the demerger of the “Digital, Media & Communication Business” undertaking of NDL into HGSL on a going concern basis.
The Board also approved the share exchange ratio for the proposed transfer. The ratio was approved based on the comprehensive valuation exercise carried out and recommended by two independent valuers, namely, M/s KPMG Valuation Services LLP and M/s SSPA & Co., Chartered Accountants. As per the valuation, each shareholder of NDL holding 63 equity shares will receive 20 fully paid equity shares (post bonus) of face value of Rs 10 per share of HGSL. These new share allotments in HGSL will be over and above the existing shares of NDL held by the shareholders, thus retaining their existing shareholding in NDL.
“The media and entertainment industry is going through a digital transformation on the back of emerging technologies. The proposed transfer, once completed, will fuel 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.
NDL shall pursue other high growth-oriented business opportunities in a restructured manner including rebranding, renaming in consonance with potential M&A proposals.