Dixon Technologies Announces Strategic Stake Acquisition in Aditya Infotech Limited

On July 08, 2024, Dixon Technologies (India) Limited announced via a stock exchange filing that Aditya Infotech Limited (AIL) plans to acquire a 6.5% stake in its equity through a Share Subscription and Purchase Agreement (SSPA) with AIL Dixon Technologies Private Limited (JV Company).

This involves subscribing to 73,05,805 equity shares of AIL in exchange for transferring 95,00,000 equity shares of AIL Dixon Technologies held by the company, constituting 50% of the JV Company’s share capital. Completion is subject to conditions, including approval from the Competition Commission of India (CCI).

Acquisition Details

Related Party Transaction: The acquisition does not qualify as a related party transaction. The promoter, promoter group, or associated companies have no interest in the Target Company.

Governmental and Regulatory Approvals: This transaction requires no other governmental or regulatory approvals except the Competition Commission of India (CCI).

Timeline for Completion: Subject to meeting conditions precedent outlined in the SSPA, the allotment of 73,05,805 equity shares of Aditya Infotech Limited to AIL Dixon Technologies Private Limited is expected within 120 days from the execution date of the SSPA.

Consideration and Details: In exchange for the Subscription Shares, Dixon Technologies (India) Limited will transfer 95,00,000 equity shares of the JV Company to Aditya Infotech Limited. These shares, with a face value of ₹10 each, represent 50% of the JV Company’s share capital on a fully diluted basis.

Acquisition Cost and Shareholding Percentage: Upon successful acquisition of the Subscription Shares, AIL Dixon Technologies Private Limited will hold 6.5% of Aditya Infotech Limited’s fully diluted equity share capital.

Objective of Acquisition

This acquisition aligns with the company’s investment strategy, which prioritises external financial investments to create long-term value and release capital to pursue additional growth opportunities that enhance shareholder value for Dixon Technologies.

About Aditya Infotech Limited

Aditya Infotech Limited, a public company incorporated under the Companies Act 1956 and based in New Delhi, India, operates with an authorised share capital of ₹15,00,00,000 and a paid-up share capital of ₹10,25,00,000. Specialising in the wholesale trading industry, Aditya Infotech engages in the sourcing, distributing, and marketing of security systems under various brand names, prominently including ‘CP Plus’.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.