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Cambridge Solutions Ltd has decided to sell its BPO business to Xchanging Technology Services India Pvt Ltd., an indirect wholly-owned subsidiary of Xchanging Plc.
Cambridge said the net payment to Xchanging, after settlement of debt would be about Rs 246 crore, while the total agreed valuation of Rs 299.80 crore, which implies a shortfall of Rs 53.80 crore.
Xchanging acquired a 75 per cent stake in Cambridge Solutions in 2009 for $147.3 million.
In a filing with the BSE, the company said the board of directors decided to take this step after looking at several options. Cambridge said that it could not honour the financial commitment arising out of invocation of the corporate guarantee provided in favour of Xchanging UK Ltd in respect of the loan provided by Xchanging UK Ltd to Cambridge Integrated Services Group Inc. The sale is subject to a postal ballot.
Since the sale of the BPO unit will not be sufficient to make up the money that Cambridge owes Xchanging, the board of directors decided to sell shares held by the company in Cambridge Integrated Services Victoria Pty Ltd, Australia, a wholly-owned subsidiary of the company, to a subsidiary of Xchanging Plc at a price of $16.7 million.
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