Financial Daily from THE HINDU group of publications
Saturday, Jul 20, 2002
Corporate - Mergers & Acquisitions
Visesh lines up pref issue for acquisition
BANGALORE, July 19
VISESH Infosystems Ltd, the Bangalore-based software solutions provider, proposes to make a preferential allotment of 37.5 lakh equity shares to stakeholders of the Delhi-based Infotecnics India Ltd to part fund its acquisition plans.
Visesh is pricing the preferential allotment at a premium of Rs 5 for a Rs 10 share, company sources said. In addition to this, the company plans to pay Rs 50 lakh as cash for the Infotecnics deal, which is estimated to be around Rs 6.12 crore.
The board of directors of Visesh have approved the decision of preferential allotment for which members approval is being sought in the forthcoming EGM on July 25.
Visesh, which had acquired a 33 per cent stake in the Delhi-based Infotecnics India Ltd two years ago now plans to take complete control of the company. Visesh Infosystems provides solutions mainly in the areas of ERP, e-commerce, offshore and onsite consulting and high-end education services.
The company has a headcount of nearly 120 people. Infotecnics is a systems integration and networking company.
Both entities are being merged to form a new entity Visesh Infotecnics Ltd, sources said adding that the merger process is already on and should be completed over the next few months.
The merger is likely to come into effect from July 1, 2002. The promoter of Infotecnics Mr Sanjiv Bhavnani is being appointed as joint managing director of the merged entity.
The acquisition is expected to help Visesh evolve as a total IT solutions company.
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