Tech Mahindra (Americas) announced on October 23 that it will divest its 30 percent holding in Avion Networks Inc. for $50,000 to Kanchana Raman, the promotor of Avion Networks Inc. The expected date of completion of the sale/disposal is on or before October 31, 2023.
Tech Mahindra (America) Inc (TMA), a wholly owned subsidiary of Tech Mahindra Limited, currently holds 30 percent share capital of Avion Networks Inc.
The company said in an exchange filing that the buyers are not related to the promoter or promoter group of Tech Mahindra Limited.
Explaining why it is divesting its stake in Avion Networks, the information technology and software services provider said: “Since there was no contribution in terms of turnover or net worth in the consolidated turnover or net worth of the company from this entity, it was decided to divest Tech Mahindra’s stake in Avion Networks to optimize the compliance cost and risks.”
Tech Mahindra had formed a joint venture with global telecom technology firm Avion Systems in 2015 to offer network design and software engineering services for the deployment and management of mobile networks and the transformation of these networks to cloud-enabled, virtual and open systems software-driven networks.
Earlier this year in June, Tech Mahindra announced the divestment of its 49 percent stake in SARL Djazatech.
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