Business Daily from THE HINDU group of publications
Friday, Oct 17, 2008
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Business Daily from THE HINDU group of publications Friday, Oct 17, 2008 ePaper | Mobile/PDA Version | Audio | Blogs |
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Software Info-Tech - Mergers & Acquisitions
Our Bureau New Delhi, Oct.16 HCL Technologies — the sole bidder left in fray after Infosys pulled out of the race for Axon — has purchased 10.43 per cent stake in the UK-based SAP consulting firm, at 631 pence a share. “We have purchased an additional over 10 per cent of Axon shares for a net value of 631 pence per share through market purchases. It is a smart move and we will reveal our strategy in the coming days,” the HCL Technologies CEO, Mr Vineet Nayar, said. Last week, within hours of Infosys Technologies deciding against sweetening its 600-pence offer for Axon, HCL Technologies announced it would implement its own £441 million offer through a ‘Scheme of Arrangement’. This scheme is scheduled to be posted by Axon for its shareholders around October 24 and going by the current timetable, the deal is expected to be completed before year-end. HCL has already tied up a £400-million loan from Standard Chartered, with the interest cost pegged at 6.4-6.7 per cent. It may be recalled that Infosys, which first made a bid for the buyout of Axon late August, had put a £407 million offer on the table. However, HCL Technologies trumped that bid with its own offer of 650 pence per share, an 8 per cent premium over Infosys’ offer. In the light of HCL’s higher offer, the Axon board — which had initially backed the Infosys bid — withdrew its recommendation and supported HCL’s offer to its shareholders. Acquisition is a responsibility, not a victory: HCL chief HCL Tech does not rule out new bidder for Axon HCL Tech seeks shareholder nod to borrow up to Rs 4,000 crore More Stories on : Software | Mergers & Acquisitions | HCL Technologies Ltd
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