Mobile entertainment services firm OnMobile Systems Inc. has entered into an agreement to sell 18% stake in its Bengaluru-based subsidiary OnMobile Global Ltd to Jump Networks Ltd.
As part of the deal, Jump Networks Ltd that provides co-location and bandwidth services, will buy 1.9 crore shares of OnMobile Global at a price between ₹75.50 and ₹78 apiece, the two companies said in an exchange filing. The deal value would be in the range of ₹143.45-148.2 crore.
Shares of OnMobile Global closed up nearly 20% at ₹39.15, while those of Jump Networks ended up 0.72% at ₹55.70 on the BSE.
The companies expect the sale to be completed within 75 days, with the deal is subject to the terms set out in the share purchase agreement signed between the two companies.
“It is OMSI’s belief that OnMobile’s strong portfolio of products and long-standing operator relationships together with the technology thrust provided by JUMPNET will help in cementing OnMobile’s position as a global leader in mobile entertainment,” the companies said in a joint statement.
Incorporated in the year 2000 as Onscan Technologies India, OnMobile says it delivers over 575 million music plays daily to 1.68 mobile customers worldwide.
Jump Networks Ltd, formerly known as Iris Mediaworks Ltd, is a technology company providing next generation digital services on ultra-low bandwidth to the historically under-served sections of the society.
Source: Mint