NSE To Sell Subsidiary's Digital Technology Business To Investcorp
Digital Technology Business of NSEIT Ltd. will be sold to Investcorp on a slump sale basis, the company said.
The board of the National Stock Exchange has approved the sale of the digital technology business of its wholly owned step-down subsidiary, NSEIT Ltd., to U.S.-based Investcorp.
Along with this, NSEIT Ltd. is also selling its subsidiaries NSEIT U.S., Aujas Cybersecurity Ltd., and CXIO Technologies Ltd., to the U.S.-based firm, the company said in the press release.
The NSEIT standalone business includes two primary businesses, viz., the digital technology business and digital examination business.
As part of this transaction, Investcorp is buying only the digital technology business, and since it is a business segment and not a separate entity within the NSEIT Standalone entity, this is agreed to be divested through a slump sale, the release said.
Investcorp is a U.S.-based leading global manager of alternative investments with six lines of business, namely, private equity, real estate, absolute return investments, infrastructure, credit management, and strategic capital.
The aggregate consideration towards the sale of the digital technology business of NSEIT and the sale of subsidiaries of NSEIT mentioned above is Rs 1,000 crore, to be adjusted for net debt and any change in the agreed-upon net working capital position at the time of closing.
"The enterprise value of all four businesses separately is yet to be finalised, and the EV for the Digital Technology Business under slump sale is expected to be in the range of Rs 425 crore to Rs 475 crore," it said.
