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Tag: scheme of arrangement

  • NxtDigital receives NCLT sanction to the scheme of arrangement with Hinduja Global Solutions

    NxtDigital receives NCLT sanction to the scheme of arrangement with Hinduja Global Solutions

    Mumbai: On Friday, the National Company Law Tribunal (NCLT) gave its final approval and sanction to the scheme of arrangement between NxtDigital (NDL) and Hinduja Global Solutions (HGSL).

    The media & communication business undertaking, including the assets and liabilities as well as the subsidiaries, is transferred to HGSL in accordance with the scheme.

    Amar Chintopanth, a full-time director and the company’s chief financial officer, will remain in that position. The new NDL will concentrate on the next stage of its reorganisation after the scheme takes effect, taking the necessary regulatory and other pre-emptive steps.

    The final order of the NCLT was recorded during a board of directors meeting that was held for the company. Additionally, the board has set 23 November 2022 (the close of business) as the record date for the list of shareholders who will be qualified to receive shares issued by HGSL under the scheme of arrangement.

    All NDL shareholders who held equity shares in the company as of 23 November 2022, at the close of business, will receive an allocation of equity shares in HGSL equal to 20 equity shares fully paid up in HGSL for every 63 equity shares fully paid up in NDL.

    More significantly, all NDL shareholders as of the record date will be qualified to take part in any corporate actions that HGSL chooses to take, including dividends (interim and final), buybacks, and other actions, if any, after the record date.

  • Hinduja Ventures to become an operating media corporation

    Hinduja Ventures to become an operating media corporation

    MUMBAI: The Board of Directors of Hinduja Ventures Limited (“HVL”) have approved Scheme of Arrangement between IndusInd Media and Communications Limited (Demerged Company) and Hinduja Ventures Limited (Resulting Company) and their respective shareholders subject to all statutory/ regulatory approvals and approval of the shareholders.

    The IndusInd Media & Communications Limited (“IMCL”) business consists of digital content distribution using multiple platforms such as satellite and fibre. It also carries Broadband and internet business carried out through its subsidiary OneOTT Intertainment Limited (“OIL”). IMCL also has a dedicated unit that develops content for various platforms and owns a significant content library and movie negatives.

    HVL believes that this media business has a high growth potential going forward due to a fast maturing industry and recent regulatory reforms like New Tariff Order (“NTO”). These stimuli provide the right opportunity to consolidate media vertical which will propel it to the next level of growth and performance. The exchange ratio for the proposed restructuring exercise shall be 10 equity shares of HVL fully paid up for each 125 equity shares of IMCL fully paid up.

    Benefits of this consolidation into a single group will achieve flexibility, scale and financial strength. Upon segregation of identified business undertaking, post restructuring the Company shall be able to achieve higher long-term financial returns, increased competitive strength, cost reduction and efficiencies, productivity gains, and logistical advantages, thereby significantly contributing to future growth in their respective business verticals.

    The benefits that shall accrue to the shareholders are Consolidation and growth of Media and Communications undertaking which will help to enhance and will show marked improvement in market shares and revenues.; Focused Management, Organization Efficiency and Operational Synergies; Unlock shareholders value; and Efficiency in Fund raising for harnessing future growth

    The appointed date of the scheme of arrangement might be October 01, 2019 after securing all statutory and regulatory approvals.