Polaris dilutes entire stake in US subsidiary

However, company did not disclose details of buyer, value of transaction

Polaris Financial Technology Limited today informed the Exchange that the Company has executed definitive agreements for the divestment of its shares in its subsidiary IdenTrust Inc  in the United States.

 

The company did not disclose further details of the transaction including the name of the buyer and the value.

 

IdenTrust Inc, a subsidiary of Polaris, is engaged in the business of trusted identity solutions and digital identity authentication services based in the United States.

 

According to company's Annual Report, during 2012-13 the company has received an order from the Committee on Foreign Investment in United States, that the business of IdenTrust is critical to United States security infrastructure and therefore ruled that the company must be controlled by a US management and imposed certain restriction of the operations of the company.

 

Pursuant to this, the company decided to sell its investment in IdenTrust.

 

The company on April 27, 2011 acquired 85.30% equity stake in Iden Trust Inc. The total consideration for the acquisition was RS 88.12 crore. The company has also advanced loans aggregating to Rs 2.17 crore to the subsidiary