By Malvika Gurung
Investing.com --
The media company NXT Digital Ltd (NS:NXTD) has announced the demerger of its media and communications business in a scheme of arrangement, after a board meeting held on Feb 17, 2022.
NXT Digital (NDL) is the media vertical of the Hinduja Group (HGSL).
In the meeting, the company’s board approved the scheme of arrangement between it and Hinduja Global Solutions (NS:HGSL) for demerging its ‘Digital, Media & Communication Business' undertaking to Hinduja Global.
As per the book value, the share swap ratio recommended that every shareholder of NDL will receive 20 equity shares of HGSL at a face value of Rs 10/share, for each NDL share held.
The additional shares of HGSL will only be allotted to the existing shareholders of NDL, thus retaining their existing shareholding, stated the company’s filing.
As a result, shares of NXT Digital zoomed 11.5% to Rs 446.45 apiece at 12:15 pm, after skyrocketing 20% in early trade on Friday.
Speaking on the demerger announcement, NDL’s MD & CEO stated that the proposed transfer, once completed, will boost the company’s expansion plans in the digital space, as it looks towards growing its digital portfolio across video, broadband, OTT, and WiFi services, among others.