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Dixon Technologies to exit joint venture with Aditya Infotech, sells entire stake

Dixon Technologies (India) Ltd. has announced plans to divest its 50% stake in the joint venture company AIL Dixon Tech to Aditya Infotech. According to an exchange filing, Dixon Technologies will acquire a 6.5% stake in Aditya Infotech in exchange for the divestment.

The agreement involves Dixon Technologies subscribing to 73,05,805 equity shares of AIL, constituting 6.5% of its post-issue equity share capital. This consideration will be fulfilled through the transfer of 95 lakh equity shares of AIL Dixon Technologies Private Limited, representing 50% of the JV company’s share capital.

Completion of the subscription and transfer of shares is contingent upon meeting conditions precedent outlined in the share subscription and purchase agreement, including obtaining approval from the Competition Commission of India.

Concurrently, Dixon Technologies has signed a shareholders’ agreement with AIL and its existing shareholders to govern their relationship post-acquisition of the minority stake. The agreement, effective upon the subscription of Subscription Shares, outlines management and operational frameworks for AIL.

Aditya Infotech is an unlisted public company engaged in the business of sourcing, distributing and marketing security systems under various brand names including ‘CP Plus’. The company had a revenue of Rs 2298 crore for the financial year ending March 2023.

Shares of Dixon Technologies (India) closed 0.23% lower at Rs 12,477.30 per share, as compared to a 0.05% decline in the S&P BSE Sensex. NDTV Profit

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