Indian IT services giant HCL makes $225m bid for DWS
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Tech stock DWS (ASX:DWS) has got a takeover offer from Indian tech giant HCL Technologies.
DWS’ board and largest shareholder is in favour and recommending other shareholders endorse the deal.
Shareholders will get $1.23 per share, totalling $162.15 million plus a 3 cent per share dividend worth $62.5 million which adds to $225 million all up.
HCL Technologies (NSE:HCLTECH) began as a garage start up in India in 1976.
Today HCL is one of India’s largest companies with a market cap of 2.2 trillion rupees ($40.97 billion). It offers IT services ranging from software production to cloud data warehousing.
HCL has been in the Australasian region for over 20 years and employees 1600 people. But the company’s Australia and New Zealand Country Manager Michael Horton said this acquisition would help it expand further.
“We are confident that our combined strengths will further accelerate the digital transformation journeys of our clients and innovations for their customers,” he said.
DWS CEO Danny Wallis declared the deal was an “outstanding outcome” for the company’s stakeholders.
“As a leading name in the global technology industry and with over 150,000 employees across 49 countries, they [HCL] bring best in class technology capabilities, global scale and a wide network of clients and partners across industries,” he said.
“The opportunity to realise certain value at a significant premium represents a great outcome for our shareholders, who have been supportive over the company’s long history of its strategy and direction.”
This morning, it appears shareholders concurred. DWS shares climbed over 30 per cent this morning in accordance with the offer’s premium to Friday’s closing price.
The stock is now just over 16 per cent in positive territory in the last 12 months. Additionally, having first listed in mid-2006 at $1 per share, it is up by 18 per cent since then.