| Log in

HCL Infosystems to sell Dubai subsidiary

28 February, 2018

Information technology firm HCL Infosystems Ltd said it has received board approval to sell its Dubai-based subsidiary to financial firm Axis Investment Inc. for 4.12 million Emirati dirhams ($1.12 million or Rs 7.3 crore).

Dubai-based HCL Infosystems MEA FZE, which manages enterprise IT infrastructure, is fully owned by HCL Insys Pte. Limited. The latter is a wholly-owned Singaporean subsidiary of HCL Infosystems.

The deal, to be conducted through share purchase, will include HCL Infosystems MEA’s borrowings worth $660,000 (Rs 4.3 crore or AED 2.42 million).

The stock-exchange disclosure says Axis Investment Incorporated is promoted by a group of entrepreneurs backed by a Dubai-based investor group and an Indian IT major. It didn’t disclose their identities.

HCL Infosystems said the share-purchase agreement is expected to be signed on Wednesday. The deal is likely to be closed by the end of March, it added.

For 2016-17, HCL Infosystems MEA registered consolidated revenue of Rs 66.56 crore, which is 2.88% of the total revenue of HCL Infosystems for the period. As on 31 March 2017, the company’s net worth was minus Rs 1.02 crore.

HCL Infosystems, through Insys, first acquired a 60% stake in FZE, earlier known as NTS FZCO, for $6.45 million (Rs 28.65 crore) from Dubai-based NTS Group in July 2010.

In 2012, HCL Infosystems, again through Insys, bought the remaining 40% stake for an undisclosed amount.

Recent deals by HCL Infosystems
Earlier this month, HCL Infosystems agreed to sell HCL Services Ltd to Karvy Data Management Services Ltd for $16.79 million (Rs 108 crore). The deal includes tax refunds of Rs 87 crore.

In January, it agreed to sell HCL Computing Products Ltd to business service provider Quess Corp for $4.7 million (Rs 30 crore). HCL Computing provides after-sales services for mobile phones, consumer electronics and consumer durables.

Seshadri resigns
In a separate disclosure, HCL Infosystems said Premkumar Seshadri has resigned as vice-chairman and managing director of the company. The board has appointed Rangarajan Raghavan, the president of the company, as the managing director with effect from 1 April.

Raghavan has been working at HCL Group since 1978.

Like this report? Sign up for our daily newsletter to get our top reports.

Leave Your Comment
HCL Infosystems scraps pact to sell Dubai unit

HCL Infosystems scraps pact to sell Dubai unit

Keshav Sunkara 1 week ago
HCL Infosystems Ltd said on Monday it has terminated an agreement to sell Dubai...
HCL Infosystems cancels pact to sell Digischool business

HCL Infosystems cancels pact to sell Digischool business

Keshav Sunkara 2 months ago
HCL Infosystems Ltd has terminated the business transfer agreement to sell its...
HCL Infosystems acquires remaining 40% stake in its Middle East JV

HCL Infosystems acquires remaining 40% stake in its Middle East JV

Bhawna Gupta 6 years ago
IT hardware manufacturer and systems integrator HCL Infosystems Ltd has acquired...
No Comments

HCL Infosystems to sell Dubai subsidiary

Powered by WordPress.com VIP