Ashok Leyland has entered into a share purchase agreement with Nissan International Holding BV to acquire the latter’s 38% stake in Hinduja Tech Limited (HTL) for Rs 70.20 crore.
Leyland’s share price added 2% in the early trade on February 25 after the announced its decision to acquire a 38% stake in Hinduja Tech Limited (HTL).
The company already owns 62% of the paid-up share capital of HTL and the remaining is held by Nissan International Holding B.V. “We have entered into a share purchase agreement with Nissan International Holding BV to acquire 58,500,000 shares for a total consideration of Rs 70,20,00,000 constituting 38% in the paid-up share capital of Hinduja Tech Limited (HTL),” the company said in the release. The company proposes to acquire 58,500,000 shares held by Nissan International Holding B.V to make it a wholly-owned subsidiary of the Company.
At 09:31 hours, Ashok Leyland was quoting at Rs 128.35, up to Rs 1.80, or 1.42%, on the BSE. The share touched its 52-week high of Rs 138.85 on February 4, 2021 and a 52-week low of Rs 33.70 on March 25, 2020. It is trading 7.56% below its 52-week high and 280.86% above its 52-week low.
The commercial vehicle major on Thursday informed BSE that it has entered into a share purchase agreement with Nissan International Holding BV to acquire 58,500,000 shares for a total consideration of Rs.70,20,00,000/- constituting 38% in the paid-up share capital of Hinduja Tech Limited (HTL). Consequent to the aforesaid acquisition, HTL will become a wholly-owned subsidiary of the Company.
HTL works in the IT & ITeS space. In 2019-20, the company reported a profit of Rs 15.95 crore as against Rs 14.30 crore in the year-ago period. The company’s revenue stood at Rs 226.16 crore in 2019-210 as compared to Rs 210.19 crore in the corresponding period of the last year.
In 2014, Nissan International Holdings, a Dutch investment arm of Japanese automaker Nissan, came as the strategic investor on Hinduja Tech. Founded in 2009, Hinduja Tech, formerly known as Defiance Technologies, – provides engineering, manufacturing and enterprise (EME) services and solutions for automotive, aerospace, defence, industrial and general manufacturing industries.
It may be noted, in 2016, Ashok Leyland and Nissan decided to part away from the loss-making Light Commercial Vehicle (LCV) JV, which was formed in 2007. Ashok Leyland decided to buy its partners stake in the JVs, which are floated by the two partners. Ashok Leyland continued the LCV business on its own and managed to turn it around.
