NXT Digital to transfer Digital, Media -; Communications arm to Hinduja Global, stock zooms ~13%

18 Feb 2022 , 09:53 AM

NXTDigital Limited announced the approval of 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 in a filing on Friday.

The Board approved the share exchange ratio based on the comprehensive valuation exercise carried out and recommended by two independent valuers, namely, M/s SSPA & Co., and M/s KPMG Valuation Services LLP, Chartered Accountants. As per their 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, over and above the existing shares of NDL held by the shareholders. This way, the existing shareholding in NDL will be retained.

NDL shall pursue other high growth-oriented business opportunities in a restructured manner including rebranding, renaming in consonance with potential M&A proposals.

“The media and entertainment industry is going through a digital transformation led by emerging technologies. 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” commented Vynsley Fernandes, Managing Director and CEO of NXTDIGITAL.

The proposed Scheme is subject to all shareholder and regulatory approvals and the approval of the National Company Law Tribunal (NCLT).

NXTDigital soared 13.22% in today’s trade at Rs453.20 against its previous closing price of Rs400.30 on NSE. So far, it touched day’s high and low of Rs474.50 and Rs440 respectively.