Software services provider Mastek is planning to list its subsidiary Majesco, USA (formerly known as MajescoMastek) on New York Stock Exchange. In an interview to CNBC-TV18, Farid Kazani, Group CFO & Director-Finance at Mastek, discusses the details of the development.
Below is the transcript of Farid Kazani's interview with CNBC-TV18's Reema Tendulkar.
Q: Can you give us some timelines, when can we expect the listing of Majesco US on NYSE?
A: We had already indicated that earlier. We are expecting to complete the process around June or July 2015. One of the important steps was to file S-4 document with the SEC to have that cleared with formal effectiveness and then go ahead with merger of Cover-All Technologies with Majesco and then finally make the application to the NYSE market for the listing. So, the process with SEC would take around two to two and a half months. Then there will be a stockholders meeting of Cover-All shareholders who will vote on merger and once we get this stockholders approval we will then give the application to the NYSE for listing.
Q: Any tentative timelines? Are we aware of when the Cover-All shareholders will be meeting to given their final approval on the merger?
A: As we filed the document last night with the SEC obviously they would take around 30 days to come back giving us the first comment and that would take some time because there would be few rounds of comments. Only after we have satisfied SEC with regards to all the requirements and compliances and satisfied them also on the comments they will give us an okay to call the stockholders meeting. By guess is that should be around April end and the stockholders get around 30 days to vote on the approval for the merger.
Q: Any idea about the expected valuation of Majesco US? Have you done some initial study on how much it could be once you list it?
A: It is too early because ultimately when Majesco gets listed it will be more like a price discovery. However at this time where we are looking at Cover-All which is valued at close to around USD 35 million and typically the Cover-All shareholders will own 16.5 percent in the combined entity in Majesco. So, the implied value would be little over USD 200 million for the Majesco entity. What the price will be on listing is a matter of ultimately how the stockholders look at the valuations of the company at that point of time.
Q: One of the points that you have given in your S-4 document is that one of the growth avenues for the company will be perhaps acquisitions or similar companies that you will look to acquire which will help you build capabilities as well as skills. Any more since you have already acquired Cover-All, you have done an acquisition of Agile Technologies as well, is there anything else in the works?A: The business of Agile Technologies was acquired in the month of January and Cover-All comes into the fold lets say in another six months time. In this year it was important to kind of indicate both these acquisitions and then do any important kind of rollout of our business to the set of 150 customers that we would be trying to kind of build our business. In this year we are unlikely to do anything further but if you look at how the revenues pan out if you add the business of Majesco, Agile and Cover-All on a pro forma basis we roughly earn USD 106 million. and that is something which we have already disclosed in the S-4 document.
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