The Hindu : Business : Aptech to float JV with Chinese partner

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Thursday, Mar 20, 2008
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Aptech to float JV with Chinese partner

Special Correspondent

NEW DELHI: Information technology learning solutions firm Aptech has decided to float a joint venture company with its Chinese partner, in which the former will hold 22 per cent stake.

Stating that the move would benefit its shareholders, Aptech said its board believes that the company and its shareholders would benefit from the transactions as contemplated by the framework agreement that was outlined by its Chinese joint venture partner.

As per the agreement, Aptech along with its Chinese partner would have full alignment of equity interest in a holding company to be incorporated outside China.

Upon completion of transactions, Aptech would receive 22 per cent of the outstanding shares in the holding company and, in exchange, the holding company would receive the 50 per cent equity interest in the China joint venture that Aptech now owns.

“The 22 per cent outstanding shares of the holding company as of the transaction completion date will represent a better equity value than the 50 per cent equity interest in the China joint venture that Aptech presently owns,” it said, adding that the holding company, which would be incorporated outside China, would be listed on an internationally recognised stock exchange.

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