Information technology services company HCL Infosystems Ltd will sell a Singapore subsidiary to a Hong Kong-based company as part of efforts to monetise its assets and reduce debt.
HCL Infosystems will sell HCL Insys Pte. Ltd to PCCW Solutions Ltd, the flagship company of the IT-to-telecom PCCW Group, the Indian company said in a statement.
The deal will exclude two parts of HCL Insys’ operations: its trading business in Singapore and Nurture Technologies FZE, which holds residual assets relating to HCL’s Middle East operations.
The deal value is linked to the enterprise value of HCL Insys, which was SGD 42 million ($30.4 million or Rs 215 crore at current exchange rates) on a debt- and cash-free basis.
The transaction is expected to close within six months, and is subject to certain business-related benchmarks, including approvals from HCL shareholders and the relevant authorities.
HCL Insys employs around 600 people in Singapore. It provides IT services in the computing, storage, networking and security segments, among others, according to its LinkedIn page.
PCCW Solutions has 11 offices across Asia, including in countries such as Singapore, the Philippines, Taiwan and mainland China. The company helps enterprises accelerate their switch to digital processes. It also supplies and maintains critical IT systems for the public sector, according to its website.
Tags: HCL Infosystems Ltd, PCCW Solutions Ltd