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Alldigi Tech Limited M&A Activity 2022

Jun 22, 2022

62364_rns_2022-06-22_ae274ee3-5bf7-43a6-a6fe-972db9b43a27.pdf

M&A Activity

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June 22, 2022

To BSE Limited Floor 25, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai – 400 001 Security Code - 532633

National Stock Exchange of India Limited Exchange Plaza, Bandra-Kurla Complex, Bandra (East), Mumbai – 400 051 NSE Symbol - ALLSEC

Dear Sir/Madam,

Sub: Intimation under Regulation 30 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”)

Ref: Scheme of Amalgamation of Allsec Technologies Limited with Quess Corp Limited

We wish to inform you that after considering the recommendation and report of the Audit Committee and the Committee of Independent Directors, the Board of Directors of Allsec Technologies Limited, at its meeting held today, June 22, 2022, has inter-alia approved the Scheme of Amalgamation of Allsec Technologies Limited (“ Transferor Company or “ the Company ”) with Quess Corp Limited (“ Transferee Company ”) and their respective Shareholders and Creditors (hereinafter referred to as the “ Scheme ”) under Sections 230-232 and other applicable provisions of the Companies Act, 2013 (“ Act” ), and the rules and/ or regulations made thereunder.

The Scheme is subject to, inter-alia , receipt of requisite approvals from Securities and Exchange Board of India (“ SEBI ”), National Company Law Tribunal, Bengaluru Bench and Chennai Bench (“ Tribunal ”), BSE Limited (“ BSE ”) and National Stock Exchange of India Limited (“ NSE ”) (BSE and NSE are collectively referred to as “ Stock Exchanges ”) and other statutory and regulatory authorities, and the respective shareholders and creditors, under applicable law.

As per the Scheme, the appointed date for the amalgamation shall be April 01, 2022 or such other date as may be fixed or approved by the Tribunal or any other appropriate authority and the effective date shall be such date as defined in the Scheme.

The Scheme as approved by the Board would be available on the website of the Company after it has been submitted to the Stock Exchanges.


ALLSEC TECHNOLOGIES LTD.

Regd. Office : 46-C, Velachery Main Road, Velachery, Chennai – 600 042. Tel.: +91.44.4299 7070 web: www.allsectech.com

Corporate Identity Number : L72300TN1998PLC041033, Email : [email protected]

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The information as per Regulation 30 of Listing Regulations read with SEBI Circular No. CIR/CFD/CMD/4/2015, dated September 9, 2015 is annexed as Annexure I.

We request you to kindly take this on record.

Yours sincerely, For Allsec Technologies Limited

SRIPIRIYADAR Digitally signed by SRIPIRIYADARSHINI SHINI Date: 2022.06.22 20:51:02 +05'30' Sripiriyadarshini Company Secretary & Compliance Officer

_____________ ALLSEC TECHNOLOGIES LTD.

Regd. Office : 46-C, Velachery Main Road, Velachery, Chennai – 600 042. Tel.: +91.44.4299 7070 web: www.allsectech.com Corporate Identity Number : L72300TN1998PLC041033, Email : [email protected]

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Annexure I

Information as per Regulation 30 of Listing Regulations read with SEBI Circular No. CIR/CFD/CMD/4/2015, dated September 9, 2015

S. No. Particulars Details Details
1. Name of the entity(ies) forming part
of
the
amalgamation/merger,
details in brief such as, size, turnover
etc.
Standalone details as on March 31, 2022
Name of the
entity
Revenue
from
Operations
(INR Lakhs)
Total Net
worth
(INR
Lakhs)
Total
Assets
(INR
Lakhs)
Quess Corp
Limited
9,75,849 2,20,886 3,86,433
Allsec
Technologies
Limited
22,121 16,205 22,942
2. Whether the transaction would fall
within related party transactions? If
yes, whether the same is done at
“arms-length”
The Transaction is between Quess Corp Limited and
Allsec Technologies Limited, which is a step-down
subsidiary of Quess Corp Limited. The Transaction is
at arm’s length basis.
The share exchange ratio for the shares to be allotted
to the public shareholders of Transferor Company, as
a consideration for the amalgamation, has been
determined based on Valuation Report issued by the
independent registered valuer, supported by Fairness
Opinion issued by a SEBI registered merchant banker.
The aforesaid Valuation Report and Fairness Opinion
have been duly considered by the Audit Committee,
Independent Directors and Board of Directors of the
Company.
3. Area of business of the entity(ies) Allsec Technologies Limited is engaged in the
business of providing digital business services and
human resource outsourcing services for customers
located in India and outside India.
Quess Corp Limited is engaged in the business of
providing
services in
workforce management,

_____________ ALLSEC TECHNOLOGIES LTD.

Regd. Office : 46-C, Velachery Main Road, Velachery, Chennai – 600 042. Tel.: +91.44.4299 7070 web: www.allsectech.com

Corporate Identity Number : L72300TN1998PLC041033, Email : [email protected]

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operating asset management and global technology
solution segment.
4. Rationale
for
amalgamation/
merger
1. Simplified management structure, leading to
better administration and reduction in costs from
more focused operational efforts, rationalization,
standardization and simplification of business
processes, elimination of duplication, reduction in
multiplicity of legal and regulatory compliances
and rationalization of administrative expenses.
2. Greater integration and financial strength for the
merged entity, which would result in maximising
overall shareholders value.
3. The Transferor Company and the Transferee
Company operate businesses that complement
each other. The combination to result in stronger
consolidated revenue and profitability with
diversification in service portfolio, thereby
reducing business risks for mutual benefit of the
shareholders of both the companies.
4. Pooling
of
assets,
proprietary
information,
personnel, financial, managerial and technical
resources of the companies, thereby contributing
to the future growth of the merged entity.
5. Simplification
of
group
structure
and
consolidation of multiple listed companies within
thegroup.
5. In case of cash consideration –
amount or otherwise share exchange
ratio
Except in the case of fractional entitlement of shares,
if any, the Scheme does not involve payment of any
cash consideration.
The public shareholders of Transferor Company will
be issued equity shares of the Transferee Company as
per below Share Exchange Ratio:
“74 (Seventy Four) equity shares of INR 10/- (Rupees Ten
Only) each credited as fully paid-up of the Transferee
Company for every 100 (One Hundred) equity shares of
INR 10/- (Rupees Ten Only) held in the Transferor
Company and whose names are recorded in the register of
members on the Record Date asper the Scheme.”

_____________ ALLSEC TECHNOLOGIES LTD. Regd. Office : 46-C, Velachery Main Road, Velachery, Chennai – 600 042. Tel.: +91.44.4299 7070 web: www.allsectech.com

Corporate Identity Number : L72300TN1998PLC041033, Email : [email protected]

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The Share Exchange Ratio has been arrived at based
on Share Exchange Ratio Report issued by Ms.
Drushti R Desai, Registered Valuer, and Fedex
Securities Private Limited, an Independent SEBI
registered Merchant Banker has issued fairness
opinion stating that the share exchange ratio
determined under the said Share Exchange Ratio
Report is fair.
The new shares of the Transferee Company issued to
the public shareholders of the Transferor Company
will be listed on the Stock Exchange.
6. Brief
details
of
change
in
shareholding pattern (if any) of
listed entity
As on date, Conneqt Business Solutions Limited holds
1,11,82,912 equity shares of the Company. An
application has been made on January 21, 2022 with
the National Company Law Tribunal, Bengaluru
Bench
for
the
sanction
of
the
scheme
of
amalgamation,
inter-alia,
of
Conneqt
Business
Solutions Limited with Quess Corp Limited. Once the
said scheme is approved and sanctioned by the
National Company Law Tribunal, Bengaluru Bench,
the Transferee Company will hold 1,11,82,912 equity
shares in the Transferor Company, constituting
approximately 73.39% of the total paid up equity
shares of the Transferor Company.
Upon the Scheme becoming effective and in
consideration of merger, 1,11,82,912 equity shares
held indirectly by the Transferee Company i.e.
approximately 73.39% of the total equity shares of the
Transferor Company (held upon sanction of the
above-mentioned scheme), shall stand cancelled and
extinguished as per the terms of the Scheme and no
allotment of any shares in the Transferee Company
shall be made against those 73.39% of the total equity
shares of the Transferor Company.

_____________ ALLSEC TECHNOLOGIES LTD.

Regd. Office : 46-C, Velachery Main Road, Velachery, Chennai – 600 042. Tel.: +91.44.4299 7070 web: www.allsectech.com Corporate Identity Number : L72300TN1998PLC041033, Email : [email protected]