India’s premier integrated digital platforms company NXTDIGITAL Limited, the media vertical of the Hinduja Group, with a presence in digital cable, satellite (HITS), broadband, content syndication and teleshopping, on Thursday held a meeting for the approval of the proposed scheme of arrangement between NXTDIGITAL Limited (NDL) and Hinduja Global Solutions Limited (HGSL) and their respective shareholders- for the demerger of the digital, media & communication business undertaking of NDL into HGSL on ongoing concern basis.

The board also approved the share exchange ratio for the proposed transfer. Where the ratio was approved based on the comprehensive valuation exercise carries out and recommended by two independent valuers, namely, M/s KPMG Valuation Services LLP and M/s SSPA & Co., Chartered Accountants.

As per the valuation, each shareholder of NDL holding 63 equity shares will receive 20 fully paid equity shares (post bonus) of the face value of Rs. 10 per share of HGSL.

These new share allotments in HGSL will be over and above the existing shares of NDL held by the shareholders, thus retaining their existing shareholding in NDL, the company said in a statement.

NDL shall pursue other high growth-oriented business opportunities in a restructured manner including rebranding, renaming in consonance with potential M&A proposals.

However, the proposed scheme is subject to all shareholder and regulatory approvals and the approval of the National Company Law Tribunal (NCLT).

On the approval of the proposal, Vynsley Fernandes, Managing Director and CEO of NXTDIGITAL said, “The media and entertainment industry is going through a digital transformation on the back of emerging technologies. The proposed transfer, once completed, will fuel our expansion plans in the digital space, we look to harness analytics and automation to grow our digital portfolio across video, broadband, OTT, WIFI, and other services.”