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Cambridge Solutions to sell its BPO division to XTSI

13 Jun 2011 Evaluate

Cambridge Solutions would be selling its business process outsourcing (BPO) division including its investments in Cambridge Builders (a wholly owned subsidiary of the company) as a going concern to Xchanging Technology Services India ('XTSI') an indirect wholly owned subsidiary of Xchanging Plc for a total agreed valuation of Rs 2,99.80 crore.

This comes in light of company honoring financial commitment arising out of invocation of the corporate guarantee provided in favour of Xchanging UK in respect of the loan provided by Xchanging UK to Cambridge Integrated Services Group Inc. ('CISGI').

The sale which would be supported by two independent valuations would be suitably adjusted for working capital as on the date of actual transfer and XTSI will settle fund based credit facilities of the company directly. The net payment to the company, after settlement of debt would be approximately Rs 246 crore.

However, since the proceeds of the sale of the BPO Division after adjusting outstanding fund based credit facilities would not be sufficient to meet the financial obligation under the invoked corporate guarantee, the company ‘s board has also decided to sell the shares held by the company in Cambridge Integrated Services Victoria, Australia a wholly owned subsidiary of the company to a subsidiary of Xchanging Plc at a price of $16.7 million arrived at based on the fair valuation of shares to meet the financial statement.

Xchanging Solutions Share Price

69.67 0.75 (1.09%)
08-May-2026 16:59 View Price Chart
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