Zensar Technologies Ltd arm to divest stake in Aquila Technology Corp

The Board of Directors ("Board") of Zensar Technologies Limited (the "Company") at its meeting held on February 25, 2021, has consented and authorised its wholly owned subsidiary, Zensar Technologies Inc. (a material subsidiary), to divest 100% of its equity shareholding, held by it in Aquila Technology Corp. ("proposed divestment"), subject to approval of relevant statutory, regulatory and/or governmental authority(ies), as may be required.

Zensar Technologies Inc. holds 100% of equity in Aquila Technology Corp ("Aquila"). PSI Holding Group Inc ("PSI") a wholly owned subsidiary of Zensar Technologies Inc. was holding 100% of equity in Aquila till 31 October 2019. Effective November 2019, PSI distributed the stock of Aquila to Zensar Technologies Inc., pursuant to which Zensar Technologies Inc. holds 100% of equity in Aquila.

Aquila is primarily engaged in providing information technology and consulting services to the United States Government and its contractors. Based on the service agreement between Aquila and a customer, which requires independence, separation of its operations and lack of interdependence of Aquila on its related affiliates/parent, the Zensar Group has no ability to direct the relevant activities of and exercise control over Aquila. Accordingly, with a view to focus on the core businesses of Zensar group, over which it can exercise control, it is proposed to divest the investment in Aquila.

The sale consideration comprising USD 600,000 in cash (payable partly on signing date and partly on fulfilment of mutually agreed conditions), subject to closing conditions and an additional deferred earnout of USD 600,000, based on performance, set out in the agreement for sale.

The acquirer Business Integra Technology Solutions, Inc., 6550 Rock Spring Drive, Suite 600 Bethesda, MD 20817 is a global provider of information technology services and solutions.

Shares of ZENSAR TECHNOLOGIES LTD. was last trading in BSE at Rs.296.95 as compared to the previous close of Rs. 278.55. The total number of shares traded during the day was 81719 in over 2092 trades.

The stock hit an intraday high of Rs. 300 and intraday low of 278.1. The net turnover during the day was Rs. 23904279.

Source : Equity Bulls

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