Majesco Ltd has entered into a share purchase agreement with Mastek (UK) Limited (the "Seller") on December 12, 2019, for acquisition of 2,000,000 shares of Majesco (USA), a material subsidiary of the Company ("SPA").
In consideration for purchase of the shares, the Company will pay the Seller USD 15.94 Million, based on closing stock price of Majesco (USA) on the NASDAQ on December 11, 2019.
Accordingly, after the completion of the aforesaid purchase, stake of the Company in its material subsidiary i.e. Majesco (USA), will increase to 74.6% from existing 69.9%.
The Turnover of Majesco (USA) for FY 2018-19 (on consolidated basis) was USD 139.86 Million and Net Profit for FY 2018-19 (on consolidated basis) was USD 6.9 Million.
Mr. Ketan Mehta and Mr. Sudhakar Ram, Promoters of the Company, are Directors of Majesco (USA), subsidiary of the Company.
The Company confirms that the said transaction is being undertaken on "arm's length' basis, at Majesco (USA)'s closing stock price of USD 7.97 per share on the NASDAQ on December 11, 2019.
Majesco (USA) is a provider of software, consulting and information technology services for Life & Annuity (L&A) and Property & Casualty (P&C) insurers. The proposed acquisition will be completed within seven working days of signing of the SPA.
Shares of Majesco Ltd was last trading in BSE at Rs.395.85 as compared to the previous close of Rs. 399.65. The total number of shares traded during the day was 3271 in over 157 trades.
The stock hit an intraday high of Rs. 402 and intraday low of 395.85. The net turnover during the day was Rs. 1306225.