Shares of Nxtdigital (NDL) surged 17 per cent to Rs 486.20 on the BSE in Thursday’s intra-day trade after its board accorded in-principle approval for merger of Hinduja Leyland Finance (HLFL), into the company.
NDL is the media vertical of the global Hinduja Group. The media and communications company is India’s premier integrated Digital Delivery Platforms Company – delivering services via satellite, digital cable and broadband.
HLFL, a subsidiary of Ashok Leyland, is a non-banking finance company (NBFC) with assets under management (AUM) of over Rs 29,000 crore and a pan-India presence in 1,550 locations across 23 states and 2 Union territories.
The move is in line with NDL’s vision of pursuing high-growth opportunities post the decision to transfer the digital, media and communications business undertaking of NDL to Hinduja Global Solutions, it said in a press release.
This merger will enable the shareholders of NDL to participate in and bolster the growth plans of HLFL thereby creating value for shareholders, the company said.
The proposed acquisition will result in the merged entity having assets aggregating above Rs 29,000 crore and the shareholders receiving shares pursuant to the share swap valuation, subject to applicable regulatory approvals. The company said it will appoint independent valuers to carry out the valuation exercise and submit the report including share exchange ratio.
Source: Business-Standard