HP proposes acquisition of Digital GlobalSoft shares

HP has proposed to purchase the publicly held shares of its Indian based

subsidiary Digital GlobalSoft Ltd. According to the company release, it expects

to commit approximately Rs 1,000 crore to benefit Digital GlobalSoft

shareholders thro-ugh the proposal.

The release further states that the acquisition process will be conducted in

accordance with the newly introduced delisting procedure under the SEBI (Delisting

of Securities) guidelines, which would pro-vide for an acquisition of Digital

GlobalSoft’s shares through a shareholder-led reverse book-build process. The

release sta-ted that the shareholders of Digital GlobalSoft may tender their

shares to the acquirer at a price at or above the ‘floor price’ determined

by the guide-lines (being the average of 26 weeks traded price as quoted on the

NSE preceding the date of the public announcement of the delisting).

Subject to the number of shares required for delisting being offered at this

price and all regulatory approvals being obtained, the Hewlett-Packard acquiring

entity would be prepared to acquire the shares offered to it at Rs 750.

Compaq Computer Holdings Ltd, acquired by HP in its May 2002 merger with

Compaq Computer Corporation, presen-tly holds 50.6 percent of the fully paid up

equity share capital of Digital GlobalSoft.

On June 7, 2003, HP (India) Software Operation Pvt Ltd, entered into an

agreement with Digital GlobalSoft, for the dem-erger and transfer of a its HP

Services division to Digital Glo-balSoft in exchange for the issue of shares in

Digital GlobalSoft.

CyberMedia News Service


Bangalore