Telecom equipment maker HFCL Ltd on Thursday said it has signed an agreement to acquire up to 47.87 percent stake in Chennai-based BigCat Wireless in a Rs 22.5 crore deal. HFCL Ltd (formerly Himachal Futuristic Communications Ltd) had signed a term sheet in January for the said transaction.
BigCat is engaged in development of product and technologies in wireless communication domain. It provides design services for wireless technologies for development of advanced wireless products, systems and solutions.
"...the company has now signed a share subscription and purchase agreement on February 26, 2020 with BigCat Wireless...and the promoter shareholders of BigCat," HFCL said in a regulatory filing on Thursday.
HFCL intends to acquire up to 47.87 percent of the paid-up equity share capital (on a fully diluted basis assuming all securities and options to be issued to employees are fully converted) of BigCat in various tranches by way of subscribing/purchasing its equity shares at a total cash consideration of Rs 22.50 crore.
Also, HFCL shall exercise voting rights up to 50 percent in BigCat, post-acquisition of the equity stake.
The filing said that 4G and 5G wireless products, and wireless products for critical applications are under advance stage of development.
BigCat had a turnover of Rs 7.57 crore in 2018-19.
The acquisition would help HFCL to competitively address business of next generation wireless products, the filing said.
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