The Board of Directors of NXT DIGITAL Limited at its meeting approved the proposed scheme of arrangement between NXT DIGITAL Limited (NDL) and Hinduja Leyland Finance Limited (HLFL) and their respective shareholders – for the amalgamation of HLFL with the Company, subject to regulatory and shareholder approval.
The proposed scheme of merger of HLFL will come into effect after the ongoing scheme of transfer of “Digital Media & Communications Business enterprise” to Hinduja Global Solutions Limited (HGSL) is completed. HLFL is one of India’s leading financial NBFCs with an AUM of over 29,000 CRS and a pan-India presence at 1,550 locations across 23 states and 2 Union Territories. Through its extensive branch network, HLFL finances a wide range of commercial and passenger vehicles ranging from medium and heavy commercial vehicles, light commercial vehicles, and small commercial vehicles to cars, multi-purpose vehicles, three-wheelers, and two-wheelers as well as various types of used vehicles. HLFL is a subsidiary of Ashok Leyland Limited.
The board also approved the stock exchange ratio for the proposed merger. The ratio was approved based on a comprehensive valuation carried out and recommended by two independent valuers, M/s KPMG Valuation Services LLP and M/s SSPA & Co., Chartered Accountants. As per the valuation, HLFL shareholders will receive 23 fully paid shares of Rs 10 per share in NDL for every 10 fully paid shares of Rs 10 each held in HLFL.
The proposed merger, once completed, will support the expansion plans of both companies.
- The proposed scheme is subject to the approval of all shareholders and regulatory authorities and the approval of the National Company Law Tribunal (NCLT). Board approved the merger of Hinduja Leyland Finance Limited (HLFL) into NXT DIGITAL Limited (NDL), subject to regulatory and shareholder approval.
- HLFL is one of India’s leading financial NBFCs (Non-Banking Finance Companies) with an AUM of over Rs 29,000 crore and a pan-India presence at 1,550 locations across 23 states and 2 Union Territories.
- The move is in line with NDL’s vision to pursue high-growth opportunities; announce the decision to transfer NDL’s digital, media and communications business to Hinduja Global Solutions
The proposed merger will result in HLFL shareholders receiving NDL shares determined by an independent stock market valuation, subject to relevant regulatory approvals