TCC Concept Ltd Announces Acquisition of NES in Data Centre Expansion Move

On July 13, 2024, TCC Concept Limited announced via a stock exchange filing that it will acquire NES’s businesses and management valued at ₹461.03 crore. Pending shareholder approval, TCC Concept Limited will issue shares at ₹352 per share to promoters and non-promoters.

Additionally, the Board approved an increase in authorised capital from ₹25 crore to ₹40 crore, subject to member approval and amendments to the Memorandum of Association (MOA).

Objective of Acquisition

TCC Concept Limited aims to acquire NES to align its business strategy with NES’s operations, which are strategically complementary to its own plans. The acquisition will be achieved by issuing new shares and enhancing shareholder and stakeholder value. This move is intended to expand and diversify TCC Concept Limited’s presence in the Data Centre industry.

Acquisition Details

Indicative Time Period for Completion

The acquisition (preferential issue) will be completed within 15 days from the date of shareholders’ resolution. If any regulatory approvals are pending, completion will occur within 15 days of obtaining such approvals.

Consideration Details

The acquisition will be executed through a share swap. TCC Concept Limited will issue 824 equity shares in exchange for each share of NES.

Cost of Acquisition

The total acquisition cost is ₹461.03 crore, comprising 15,895 equity shares at ₹2,90,048 per share (including a premium of ₹2,90,038 per equity share).

Percentage of Shareholding Acquired:

TCC Concept Limited will acquire 100% of NES, comprising 15,895 equity shares.

Related Party Transaction

TCC Concept Limited’s acquisition of NES qualifies as a related party transaction. Promoters, promoter groups, and associated companies are interested in NES. They are acquiring equity shares through a preferential issue via a swap of shares.

Nature of Interest

The promoters and related entities are acquiring 15,895 equity shares at ₹2,90,048 per share (including a premium of ₹2,90,038 per equity share).

Arm’s Length

The transaction is conducted at arm’s length and validated by a valuation report from a registered valuer determining the share price.

About TCC Concept Ltd

TCC Concept Ltd, incorporated in 1984, trades and allied activities in cotton textile products and intermediaries. Additionally, the company operates as a real estate broker, focusing on lead generation, property appraisal, and asset hiring and leasing on a commission basis.

On July 15, 2024, TCC Concept Ltd’s share price opened at ₹730.60, touching the day’s low of ₹700.05 as of 10:18 AM on the NSE.

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.