The shareholders of the UK-based SAP ERP implementer Axon Group have approved the £441-million acquisition by Indian IT services firm HCL Technologies
Shareholders ask for 650 pence/share
MUMBAI: The shareholders of the UK-based SAP ERP implementer Axon Group have approved the £441-million acquisition by Indian IT services firm HCL Technologies for 650 pence per share. At the general body meeting in London on Monday, Axon’s shareholders quoted a price of 650 pence per share on which HCL has to revert before December 15.
About 99.99% of the Axon shareholders voted in favour of the deal, which comes in the time of economic recession in the West. HCL Technologies, which now has 20 days to revert to Axon, is leaving no stone unturned for completing the acquisition.
“There is still a possibility of a second bidder in these 20 days. But we are taking all steps to increase our chances of completing the deal. There are two aspects that we are doing now which will ensure that we complete the deal,” said HCL Technologies CEO and member of the board, Vineet Nayar, answering queries from mediapersons after he announced the approval from Axon shareholders. He, however, did not elaborate on what those two aspects are that will ensure the acquisition in favour of HCL. “You have to wait till December 15 for that,” Nayar said.
In September, HCL topped Infosys Technologies Ltd’s offer of 600 pence a share for Axon. Nayar’s company had bought 10.43% of the Axon shares from the open market at between 630 and 650 pence. Nayar said that the size of the deal would be below the initially-projected £441.1 million.
He said that in the short term, the acquisition will reduce the margins. However, he said, “The benefits will start from day one as this is an acquisition that will help in providing transformational services to clients.”
HCL Technologies had evaluated four other firms in Europe before zeroing in on Axon. The acquisition will be implemented by HCL EAS Ltd, a UK-based indirect subsidiary of HCL Technologies.
A resolution passed by Axon board said, “A majority in number of the scheme shareholders who voted, either in person or by proxy, representing over 75% in value
of all of the scheme shares voted, voted in favour of the HCL scheme.”
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