Ashok Leyland has announced the merger of non-banking financial company in the business of financing commercial and personal vehicles -- Hinduja Leyland Finance (HLF) -- with NXT DIGITAL.
The merger will help integrate business operations, ensure efficiency in cash management, and formulate integrated operational and marketing strategies besides unlocking value for shareholders, according to an exchange filing.
The scheme of merger by absorption of Hinduja Leyland into NXTDIGITAL is subject to requisite approvals from Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), National Company Law Tribunal (NCLT) and stock exchanges besides respective shareholders, creditors and other statutory and regulatory authorities.
After the merger, NXTDIGITAL’s shareholding pattern will change on issuance of shares to HFL. If approved, the merger will cost NXTDIGITAL’s 23 equity shares at face value of Rs 10/-each and Hinduja Leyland Finance’s 10 equity shares at a face value of Rs 10/-each.
It further said, “As per the scheme, the appointed date for the merger by absorption of Hinduja Leyland Finance Limited with and into NXTDIGITAL Limited shall be April 01, 2022 or such other date as may be directed or approved by the National Company Law Tribunal or any other appropriate authority.”
HLF is a subsidiary of Ashok Leyland and is engaged in the business of financing commercial and personal vehicles. NDL, on the other hand, is a digital delivery platforms company that delivers services via satellite, digital cable and broadband services across the country.
Ashok Leyland shares were up 1.27 per cent on the BSE and trading at 151.35 apiece at the time of writing this story.
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