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Tejas Network To Merge Its Subsidiaries

Saankhya Labs shareholders to be issued 3,871,084 equity shares of Tejas Networks. Swap ratio of 112 shares of Tejas Networks for 100 shares of Saankhya Labs will be applied as per a company statement.

Saankhya Labs Private Limited and Saankhya Strategic Electronics Private Limited to be merged via process approved by the National Company Law Tribunal (NCLT), informed Tejas Networks in an announcement. 64.40 percent of shares of Saankhya Labs Private Limited were acquired by Tejas Networks in July 2022.

According to a statement given by the company, 3,871,084 equity shares of Tejas Networks will be issued to shareholders of Saankhya Labs holding 35.60 percent equity shares. Swap ratio of 112 shares of Tejas Networks for 100 shares of Saankhya Labs will be applied to complete the transaction.

Expectedly the amalgamation will help Tejas for the expansion of wireless network with the help of 5G Open Ran (ORAN). The deal will also allow Tejas improve its expertise in fabless semiconductor chip designs. ORAN is a 5G cellular broadcast and satellite communication product.

Acquisition of 93,571 equity shares of Saankhya Labs (Saankhya) at a price of Rs 454.19 per equity share via secondary purchase was done Tejas Networks in last August, as per a leading media house report.

Mandatory approval for the proposed deal is yet to be received from markets regulator like Securities and Exchange Board of India (SEBI), company’s shareholders, Saankhya Labs, Saankhya Strategic, NCLT and other statutory and regulatory bodies.