Hinduja group flagship Ashok Leyland (ALL) on Thursday announced it has entered into a share purchase agreement with Nissan International Holding to acquire the latter’s 38% stake in Hinduja Tech (HTL) for a consideration of Rs 70.20 crore. Following the acquisition, HTL will become a wholly-owned subsidiary of the Chennai-based commercial vehicle manufacturer.
The company owns 62% in the paid-up share capital of HTL and the remaining was held by Nissan International Holding.
HTL works in the IT & ITeS space.
In 2019-20, the company reported a profit of Rs 15.95 crore as against Rs 14.30 crore in the year ago period. The company’s revenue stood at Rs 226.16 crore in 2019-210 as compared to Rs 210.19 crore in the corresponding period of the last year.
Nissan International Holdings, a Dutch investment arm of Japanese automaker Nissan, came as the strategic investor on Hinduja Tech in 2014.
Founded in 2009, Hinduja Tech provides engineering, manufacturing and enterprise (EME) services and solutions for automotive, aerospace, defence, industrial and general manufacturing industries.
ALL and Nissan had decided to part away in 2016 out of their light commercial vehicle (LCV) JV, which was formed in 2007 and other related joint ventures. ALL decided to buy its partners stake in the JVs, which were floated by the two partners.