Chennai-based Megasoft Limited and US-based Boston Communications Group Inc (bcgi) today announced a definitive agreement, whereby Megasoft will acquire the Nasdaq-listed company for around $65 million (around Rs 260 crore) -- $3.60 per share of bcgi common stock that works out to 83% of the total equity shares of the entity. The offer price includes a premium of 80% when compared with traded value of $2 per share on Saturday.
The two companies are into products and services, including real time charging, billing, prepaid products and managed services catering to the wireless telecom space. Besides recommending the shareholders to tender their shares into the tender offer, the members of the bcgi board has also agreed to tender their shares into the offer, according to GV Kumar,managing director and chief executive officer of Megasoft.
Kumar said bcgi would become a 100% subsidiary of Megasoft after the acquisition process is completed. The tender offer is expected to commence on or before August 1, 2007, and will expire on the 20th business day.
Read more in The Business Standard article.
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