Tricom Board approves acquisition of Godrej Global Solns

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Tricom Board approves acquisition of Godrej Global Solns

Tricom India Ltd. (BSE Code: 531675 NSE: TRICOM,) a non-voice ITES service provider for global businesses has announced that its Board of Directors has approved acquisition of Godrej Global Solutions Ltd, a subsidiary of Godrej Industries Ltd. The acquisition will be completed in due course subject to approval from the shareholders

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Tricom India Ltd. (BSE Code: 531675 NSE: TRICOM,) a non-voice ITES service provider for global businesses has announced that its Board of Directors has approved acquisition of Godrej Global Solutions Ltd.(GGSL), a subsidiary of Godrej Industries Ltd.  The acquisition will be completed in due course subject to approval from the shareholders.

Tricom will be acquiring 100% equity of GGSL valued at Rs 19.63  crore. While a part payment will be made through cash, the remaining will be through optionally fully convertible debentures. Tricom will be funding this deal entirely through internal accruals.

Since 2002, GGSL has been offering  unique and customized business process outsourcing solutions and services for enhancing the effectiveness of business operations and thereby providing valuable leverage to business. Their work specializes in three main domains: Healthcare, Data Capture and Data Conversion. The company showed a top line of Rs 16.50 crores in FY 07-08 and has shown immense potential for growth which, the management feels, will get stronger in the coming years.

"Acquisitions were a part of the growth strategy for Tricom and we hope to grow organically and inorganically." says Chetan Kothari, Managing Director of Tricom India Limited. He further stated, "Post acquisition, the core team of GGSL will continue functioning in their respective positions and capacities."

Commenting on the deal, Mr. Sanjay Tipnis, Managing Director of GGSL said, "We are looking forward to exploring synergies as both the companies are focused in similar areas of business.  We believe that using the additional infrastructure that Tricom will provide, we will be able to grow faster and service our clients more efficiently."

GGSL currently employs nearly 650 people and has two facilities; one at Belapur in Navi Mumbai and the other in Chennai.

Stock Split:

To facilitate the liquidity in the market the Board also recommended sub-division of the equity shares with the face value of Rs 10 each to the face value of Rs 2 each (i.e.: One share of Rs 10 each will become 5 shares of Rs 2 each). This subdivision is also subject to necessary approvals.

Sourced From: Prana Public Relations