NXTDIGITAL spurts after board OKs transfer of media biz to HGSL

NXTDIGITAL jumped 13.42% to Rs 453.75 after the company said its board approved the sale of its media and communications business to Hinduja Global Solutions.

The board of NXTDIGITAL (NDL) at its meeting held on 17 February 2022, approved the proposed scheme of arrangement between NDL and Hinduja Global Solutions (HGSL) and their respective shareholders - for the demerger of the "digital, media & communication business" undertaking of NDL into HGSL on a going concern basis.

As per the valuation, each shareholder of NDL holding 63 equity shares will receive 20 fully paid equity shares (post bonus) of face value of Rs 10 per share of HGSL.

These new share allotments in HGSL will be over and above the existing shares of NDL held by the shareholders, thus retaining their existing shareholding in NDL.

Vynsley Fernandes, managing director and CEO of NDL said, "The media and entertainment industry is going through a digital transformation on the back of emerging technologies. The proposed transfer, once completed, will fuel our expansion plans in the digital space, as we look to harness analytics and automation to grow our digital portfolio across video, broadband, OTT, WIFI and other services."

NDL shall pursue other high growth-oriented business opportunities in a restructured manner including rebranding, renaming in consonance with potential M&A proposals.

NDL is the media vertical of the global Hinduja Group. The media and communications company is India's premier integrated digital delivery platforms company - delivering services via satellite, digital cable and broadband.

With a pan-India reach, NDL delivers television services through a dual delivery platform consisting of digital cable and the country's only Headend-In-The-Sky (HITS) satellite platform, under the brand names INDigital and NXTDIGITAL respectively.

The company's Digital Cable television platform delivers 700+ channels across 100+ cities and towns whilst the HITS service is available in more in over 1500 cities and towns covering more than 4500 Pin Codes- with a significant presence in the fastest-growing demographics of semi-urban, semi-rural and rural India.

On a consolidated basis, NDL reported net loss of Rs 30.24 crore in Q3 December 2021 as against net loss of Rs 5.34 crore in Q3 December 2020. Net sales declined 0.65% to Rs 249.55 crore in Q3 December 2021 over Q3 December 2020.

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