HP plans buyback in Digital, to delist

By Our Convergence Bureau | 01 Dec 2003

Bangalore: Hewlett Packard (HP), a 50.6 per cent stake owner in software services vendor Digital GlobalSoft Ltd, has proposed to buy back stakes held by local minority shareholders and subsequently delist Digital from the bourses.

The share buyback will be through a reverse book-building exercise and HP has quoted Rs 750 as an indicative buyback price. HP expects to commit close to Rs 1,000 crore to benefit Digital GlobalSoft shareholders.

The buyback would make Digital a 100 per cent subsidiary of HP. The other software development operations of HP in India would be merged with the entity "in line with the global delivery structure", Mr Hans Lidforss, Vice-President of Strategy and Corporate Development, HP, said from London. Digital would call an extraordinary general meeting by mid-January and the delisting procedure would start soon after, following necessary approvals.