Hi Aditya, what’s the source for this ? Also The stock saw highs if 74 and retraced. Any recent reviews of #TakeSolutions
Take Solution has come with proposal to sell 75 % of ( or refined word strategic partnership) its cash cow business and growth business i.e. Novartis Life Sciences to HIG. From Latest Conference Call :
Jaganathan S: I am a little concerned about this entire transaction, from what I can see, you had a big debt on your books, and you sold off what you earlier described as the most profitable part of the business, 75% of that. You are left with a business, which is now what it used to be and what Ram Yeleswarapu and others IT side of people used to handle. So left essentially with 30% of the business, 70%, and the other 25% of the business you sold you are basically a minority
partner in that. Just like an investment in that firm. I think we have gone back to square one. You
become an IT services company again. You said you become a pharma industry company. Now
you have sold off most of it, you just now described it as a very attractive business, but you sold
it off. I don’t see how shareholders benefit from this transaction at all. Can you please explain?
H.R. Srinivasan: Yes, I can. There are several assumptions that you have made. Secondly, whatever is there is going to obviously come to a shareholder meeting for deliberations. So, there will be a detailed explanatory note on what is being, I won’t even use the word sold. Where we are developing a strategic partnership and why that is relevant. There will be an explanatory note and there’ll be a detailed analysis that will be sent to the shareholders. So, the shareholders have their right to vote at that. I have not described to you the second part of the business; you have assumed as a particular form of IT services business. I only said that it is aimed at the CIO organization. What is the complexity of that business, what is the specialty of that business I have not explained in this call and I don’t intend to because there is detailed work going on that and a separate presentation will be made to investors. At this point, your concerns as a shareholder are noted and there will be a detailed explanation of that, that will come. There will be an opportunity for you to reflect on that and vote as a shareholder. Additionally, I want to say that there are debt commitments which the company has an obligation to fulfill its debt commitments, which is a very important consideration.
So, from above it appears that minority share holders have been taken for a ride and left with only IT business ( 30% of revenue) + 25% investment in Novartis Life Science. Although, it will serve the debt but at the same time will limited the future prospects of business.
Disclosure: Invested. No transaction in last 90 days
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The transaction is scrapped now, they might default on their debt obligations.
Disclosure: Not invested
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Defaulted on loans of nearly $30M from IIB and Siemens Bank
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Had lot of expectations from this business but seems the company has done hard landing
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Further, the Company has pragmatically initiated conversations for diversification of operations to
other verticals subject to current non-compete obligations applicable in the CRO industry. The company’s strategy
is to solicit mutually rewarding business partnerships/Mergers & Acquisitions in non-cash transactions and a positive
closure of the deal is expected in the Financial Year 2026.
Mentioned in the recent AR. https://www.bseindia.com/xml-data/corpfiling/AttachLive/8afc3af2-2f75-4aa6-8236-71d0b4786867.pdf