AGC Networks to increase acquisition of Z Services to 86% for $3.44M

AGC Networks said that due to the difference in the closing financial statements, the valuation of Z Services has been adjusted and the seller has compensated the acquirer by allowing the acquirer to increase its shareholding in Z Services from 76% of shares to 86% of shares.

Aug 18, 2021 01:08 IST India Infoline News Service

AGC Networks has announced that the company will increase its shareholding in Z Services to 86% from the previous 76%. The transaction will value around $3.44M.

In April this year, AGC Networks informed exchanges about the completion of the acquisition of 76% of shares of Z Services HQ DMCC (“Z Services”), Company being a limited liability company incorporated under the laws of Dubai Multi Commodities Centre (“DMCC”), by Black Box Holdings Limited (hereinafter referred to as “Acquirer” or “Black Box”), and Indirect Wholly-Owned Subsidiary of the Company, by execution of Share Sale Agreement with Z Services Holding Ltd (a BVI business company incorporated in the British Virgin Islands) hereinafter referred to as “seller”.

However, on Tuesday, AGC Networks said that due to the difference in the closing financial statements, the valuation of Z Services has been adjusted and the seller has compensated the acquirer by allowing the acquirer to increase its shareholding in Z Services from 76% of shares to 86% of shares and to return consideration to the extent of US$ 5,00,000. After these adjustments, the total consideration for 86% equity shares of Z Services stands at US$ 3.44mn.

The said transfer to additional shares and the return of consideration is anticipated to be completed within 30 days of the signing of the amendment to the share purchase agreement which is August 16, 2021. Further, the effective date for the acquisition has been moved to July 01, 2021.

At around 1.38 pm, AGC Networks was trading at Rs1095 per piece up 1.09% on Sensex. 

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