• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• BL Club
• Smartbuy

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

New Delhi, Nov. 24 HCL Technologies’ proposed mega-acquisition of UK-based SAP consulting company Axon Group is nearly complete.

A majority of Axon shareholders (99.99 per cent) on Monday voted in favour of the Indian company’s 650-pence a share offer, but HCL Technologies is still not ruling out the possibility of a new bidder jumping into the fray. “A deal is not done till it is done. December 15 is the date of court approval and anything can happen between now and then. We have taken certain measures, which we cannot reveal immediately, that are aimed at increasing the certainty of our acquisition,” HCL Technologies Chief Executive Officer, Mr Vineet Nayar, said.

However, sources said that although as per the law there could still be a new bidder after Monday’s EGM, historically there is no precedence for the same. Once completed, this would mark the largest buy-out in the Indian IT industry – surpassing Wipro’s $600-million acquisition of Infocrossing.

Importantly, since HCL Technologies has already mopped up 10.43 per cent shares of Axon from the open market at less than 650 pence a share, the overall deal size is now lower than the initially-announced £441 million. Also, given the dollar-pound fluctuation post-acquisition, HCL Technologies now avails itself of a lower quantum of debt (in dollars) than the originally intended £400 million, and at an interest cost of 5.1 per cent compared with 6.4-6.7 per cent earlier.

Asked to comment on the timing of the deal in the backdrop of sluggishness in the SAP space, Mr Nayar said, “We initiated the acquisition as it was an area of weakness, and the slowdown has not changed that. In fact, the current environment is compelling us to go ahead with the Axon deal.” It may be recalled that Infosys, which first made a bid for buyout of Axon late August, had put a £407 million or 600 pence a share offer on the table.

More Stories on : Software | Mergers & Acquisitions | HCL Technologies Ltd

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Copyright © 2008, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line