Business Daily from THE HINDU group of publications
Thursday, Oct 11, 2007
ePaper
Business Daily from THE HINDU group of publications Thursday, Oct 11, 2007 ePaper |
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Info-Tech
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Software Corporate - Mergers & Acquisitions Money & Banking - Financial Services Nucleus Software to sell its 25% stake in GMAC Finanical Our Bureau New Delhi, Oct. 10 Software products company Nucleus Software on Wednesday decided to sell its 25.1 per cent holding in GMAC Financial Services India Ltd, to GMAC, at a price to be worked out on the basis of fair market value. “The board of directors has decided to exercise the ‘Put’ option on the 10,040,000 equity shares (25.1 per cent of shareholding) held by the company and its nominees, in GMAC Financial Services India. The option will be exercised in terms of the shareholders agreement with General Motors Acceptance Corporation (GMAC US),” the company said in a notice to the BSE. Nucleus had picked up 25.1 per cent stake in Chennai-based GMAC Financial Services India Ltd, the Indian automotive finance operation of GMAC, in September 2004, for Rs 13.65 crore in cash. It had purchased this stake from TCFC Finance Ltd. The remaining 74.9 per cent stake in GMAC Financial Services India is held by GMAC. When contacted, Mr Vishnu R. Dusad, CEO and Managing Director, Nucleus, said that the company had invested in GMAC Financial Services India to deepen its understanding of processes. “The objective then was to see how such businesses are run. Now having accomplished the strategic benefits of the investment in equity capital of GMAC Financial Services India, we decided to exercise the ‘Put’ option on the equity shares. The valuation is currently being worked-out, but I think we will make a marginal premium on our investment, and we plan to plough-in the money for our future expansion,” he said. More Stories on : Software | Mergers & Acquisitions | Financial Services
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