Ashok Leyland announces merger of Hinduja Leyland Finance with NXTDIGITAL: What it means for shareholders? - Details
Shares of NXTDIGITAL, a media company, jumped around 6 per cent to Rs 447 and 447.7 per share on the BSE and NSE, respectively, intraday during Wednesday’s trading session.
Hinduja Leyland Finance, NXTDIGITAL merger: Ashok Leyland on Tuesday announced that its board has approved the merger of Hinduja Leyland Finance (HLF) into NXTDIGITAL. Shares of NXTDIGITAL, a media company, jumped around 6 per cent to Rs 447 and 447.7 per share on the BSE and NSE, respectively, intraday during Wednesday’s trading session.
As per Ashok Leyland’s filing to exchanges, “The Board of Directors of the Company, at its meeting held today, on August 16, 2022, inter alia approved the Scheme of Merger by Absorption of Hinduja Leyland Finance Limited (“Transferor Company”) into NXTDIGITAL Limited (“Transferee Company”).”
"The merger is subject to the receipt of approvals from Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), the National Company Law Tribunal, BSE, NSE and other statutory and regulatory authorities, and the respective shareholders and creditors,” the company said.
The share exchange ratio for the merger of Hinduja Leyland Finance into NXTDIGITAL will entail 23 shares of NXTDIGITAL to be allocated for every 10 shares of Leyland Finance held, it informed.
The proposed merger intends to unlock value for shareholders, integrate business operations, and bring in efficiency in cash management, Ashok Leyland said.
No cash consideration has been involved in the merger, the auto company said in the filing.
As per the merger scheme, the appointed date for the merger by absorption of Hinduja Leyland Finance Limited with and into NXTDIGITAL shall be April 01, 2022, or such other date as may be directed or approved by the NCLT or any other appropriate authority, Ashok Leyland also said.
At around 11:10 AM, shares of NXTDIGITAL were trading around 3 per cent higher to Rs 434.3 and 434.85 per share on the BSE and NSE as against 0.49 and 0.57 per cent rise in the Sensex and Nifty.
NXTDIGITAL is the flagship media business of the global Hinduja Group, delivering services via satellite, digital cable and broadband.
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05:46 PM IST