The Board of Directors of Nxtdigital Limited (NDL), the media arm of Hinduja Group, accorded an in-principle approval for its expansive digital and media businesses to be acquired by Hinduja Global Solutions Limited (HGSL), subject to all statutory or regulatory approvals and approval of the shareholders.
NDL, which has been strengthening its leadership position through innovative solutions and advanced technology, has planned significant expansion in the emerging digital solutions space. According to the company, this move will provide much needed synergies, by leveraging the inherent expertise of HGS in the digital back-office and processes space, while allowing the media business to focus on digital expansion.
“This is in line with NDL’s vision and mission of being a significant digital platforms company, harnessing the best of emerging technologies, whilst expanding its portfolio of digital solutions across geographies,” the company said in a press statement.
The proposed acquisition will result in shareholders of NDL receiving shares of HGS as per share swap valuation and shall be subject to all applicable regulatory approvals. The company will appoint independent valuers to carry out the valuation exercise and submit the report including share exchange ratio; besides also appointing other key intermediaries to facilitate the proposed move.
The integrated digital platforms company and has a presence in over 4,500 pin codes across India through a network of around 10,000 franchisees as well as over 50 owned-and-operated Nxthubs - which besides television, broadband and OTT, are future-ready to offer emerging services like WiFi. It’s broadband business is spread across a network of more than 45 cities, delivering high-speed internet and other services to both, the retail and enterprise segment. The company has recently rolled out its combo product, comprising up to 700 digital television channels plus 300,000 hours of content on leading OTT platforms and access to broadband, with speeds up to 1,000Mbps. It is also the only platform to receive permission for sharing its HITS infrastructure with other Multi-System Operators (MSOs).
NDL said it has in place a long-term vision for shareholder value-creation, reinforced by an experienced and dynamic management and a strong corporate governance framework. Post this proposed acquisition of the digital business, which will be subject to regulatory and other approvals, various opportunities will be reviewed to define new business verticals for the future.