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Four Soft soars on getting nod for slump sale of its software solutions business to Kewill Group

13 Aug 2013 Evaluate

Four Soft is currently trading at Rs. 19.95, up by 0.95 points or 5.00% from its previous closing of Rs. 19.00 on the BSE.

The scrip opened at Rs. 19.95 and has touched a high and low of Rs. 19.95 and Rs. 19.95 respectively. So far 6115 shares were traded on the counter.

The BSE group 'T' stock of face value Rs. 5 has touched a 52 week high of Rs. 23.90 on 03-Jan-2013 and a 52 week low of Rs. 7.40 on 14-Aug-2012.

Last one week high and low of the scrip stood at Rs. 19.95 and Rs. 15.55 respectively. The current market cap of the company is Rs. 77.85 crore.

The promoters holding in the company stood at 23.95% while Institutions and Non-Institutions held 11.06% and 64.99% respectively.

Four Soft has received an approval for slump sale of its software solutions business to the Kewill Group. The board of director at its meeting held on August 10, 2013 has approved for the same. The board also approved the sale of the company’s entire share holding in its relevant foreign subsidiaries. The transaction is subject to requisite approvals and satisfaction of certain conditions precedent. BMR Advisors acted as the exclusive financial advisors for the transaction. BMR Legal acted as the legal advisors to Four Soft.

The transaction for the business is valued at $22.5 million and the shares are valued at $20.9 million, making a total deal value of $43.4 million. This deal value is indicative of the synergy of the transaction and the inherent value of the business that the company has created over the last 13 years.

Besides, subject to the statutory approval and closing processes, including a shareholder approval via postal ballot, the transaction is expected to close within the next 90 days, post which Four Soft intends to utilize its expertise and best in class product development capabilities in non competitive industry areas, such as media and entertainment, ADM and QA and big data analytics.

Four Soft is a global leader offering software solutions for the logistics and transportation industry. It provides innovative and integrated enterprise solutions ensuring customer satisfaction. Four Soft software engineers are providing solutions to enterprises across the SCM market place.

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