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
CyberMedia News Service