Japan's CAC Corporation has raised its holding in Chennai-based IT services company Accel Frontline Ltd by picking additional 17.3 per cent in an open offer for around Rs 23 crore ($3.7 million). This takes the company’s total investment to gain majority stake in the listed firm to around Rs 82 crore.
In December it had struck a deal to acquire a majority stake in Accel Frontline. CAC bought 25.2 per cent stake from promoter entities - Accel Limited, Accel Systems Groups Inc and NR Panicker for around Rs 34 crore. It also picked up 18.48 per cent through preferential issue of fresh shares costing Rs 25 crore.
After the deal, CAC becomes a strategic partner in Accel Frontline with the promoters continuing to hold some stake. Accel Frontline promoter Panicker will remain as the executive chairman.
Meghraj Capital managed the open offer.
Accel Frontline's scrip closed at Rs 43.95 a share, up 4.89 per cent in a strong Mumbai market on Wednesday.
Accel Frontline, an information technology services company, provides system integration solutions, including network design, hardware, software, website development and the sale and implementation of customised software products. The firm employs around 3,000 people and operates in seven countries.
Information technology and media firm Accel had acquired the 51 per cent stake held by British Telecom for Rs 49.9 crore to become a majority shareholder in Accel Frontline back in 2011.
Tokyo Stock Exchange-listed CAC Corporation, established in 1966 as Japan’s first independent software development company, specialises in providing services to the banking and manufacturing sectors.
(Edited by Joby Puthuparampil Johnson)