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Home INTERNATIONAL Majesco to offer US arm to PE organization Thoma Bravo for Rs...

Majesco to offer US arm to PE organization Thoma Bravo for Rs 4,455 cr stk soars 5%

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Shares of Majesco ended up locked in the 5 per cent upper circuit band at Rs 401.15, also its 52-week high, on the BSE on Tuesday just after the board of directors authorized to promote its US subsidiary to personal equity agency Thoma Bravo. Majesco India holds a 74.07 per cent stake in the US entity, Majesco US.&#13
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“Majesco, subsidiary of Majesco Restricted, has signed a definitive agreement to be obtained by Thoma Bravo, L.P., a primary private equity organization concentrated on the software and technologies-enabled providers sectors, in a transaction valuing the corporation at $594 million. Following the closing of the transaction, Majesco will operate as a privately-held business,” the enterprise stated in a push launch.&#13
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Majesco US has resolved to provide its firm to a non-public equity, Thoma Bravo, LP at $13.1/share, valuing the firm at $594 million (Rs 4,455 crore). This offer price is at a 77 for each cent premium to Majesco US’ previous close price.&#13
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“Hence, based on the stake, Majesco India will acquire cash of $420 million (Rs 3,154 crore). Assuming a capital gains tax, the organization would obtain cash of Rs 2,555 crore. This, coupled with a cash of Rs 26 crore on the company’s balance sheet the total cash with the firm would be Rs 2,581 crore or Rs 852/share (i.e is 224 for each cent previously mentioned the very last closing price of Rs 380/share),” ICICI Securities claimed in a note.&#13
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Majesco India intends to distribute complete proceeds via dividend or buyback as expeditiously as feasible. The transaction is predicted to be completed by end of 2020 topic to regulatory approvals.&#13
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Meanwhile, the stock of Mastek also surged up to 20 per cent to Rs 508.25, also its 52-week high, in the intra-day trade on the BSE. At 12:05 pm, the stock was buying and selling 16 for each cent greater at Rs 493, as in contrast to 1.2 for every cent increase in the S&P BSE Sensex.&#13
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Mastek retains close to 6.5 per cent stake in Majesco US. This transaction will value its stake at Rs 198 crore. This transaction will increase the present-day valuation of Mastek by 10 per cent, the brokerage agency said.&#13

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