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Ashok Leyland’s Hinduja Leyland Finance To Merge With NxtDigital; Shares Rise

Shareholders of Hinduja Leyland Finance will get 23 shares in NxtDigital for every 10 shares held by them in the company.

<div class="paragraphs"><p>(Photo: Company website)</p></div>
(Photo: Company website)

Shares of NxtDigital Ltd. jumped the most in eight months after its board approved a merger of Ashok Leyland Ltd.’s Hinduja Leyland Finance into the company.

The proposed merger will be completed purely through exchange of shares and there is no cash consideration involved, according to an exchange filing. Shareholders of Hinduja Leyland will get 23 shares in NxtDigital for every 10 shares held by them in the company.

Hinduja Leyland, according to the filing, is a non-bank financial company with asset under management of more than Rs 29,000 crore. It is also a material subsidiary of Ashok Leyland, while NxtDigital is the flagship media unit of the Hinduja Group.

The proposed scheme for the merger will come into effect after the ongoing scheme of transfer of the digital media and communications business into Hinduja Global Solutions Ltd. is completed, NxtDigital said.

“The move is in line with NxtDigital’s vision of pursuing high-growth opportunities. The proposed merger, once completed, will fuel the expansion plans of both companies,” it said.

The proposed scheme is subject to all shareholder and regulatory approvals and that of the National Company Law Tribunal.

Reacting to the announcement, shares of NxtDigital jumped as much as 6.6%, the most in eight months. The stock closed 3.7% higher on Wednesday.