Business Daily from THE HINDU group of publications
Monday, Sep 29, 2008
ePaper | Mobile/PDA Version | Audio | Blogs

Cross Currency

Group Sites

Home Page - Software
Info-Tech - Mergers & Acquisitions
Get Latest Quote and Company Info
HCL ties up £400-m loan for Axon offer at 6.5%

Moumita Bakshi Chatterjee

New Delhi, Sept. 28 HCL Technologies, which rivaled Infosys’ bid for Axon Group, has tied up the £400-million loan component to fund its offer, at an attractive interest rate of about 6.5 per cent per annum, based on the current dollar LIBOR rate.

According to sources, the borrowing has been structured in such a way that the loan attracts a dollar LIBOR instead of pound.

“The loan carries an option for HCL Technologies to draw down in equivalent of dollars. This is a commercially evaluated decision. Given the borrowing cost of 6.5 per cent per annum compared to our treasury yield of about 10 per cent on our own funds, it becomes clear as to why HCL Technologies decided to maximise loan component for funding the acquisition,” sources pointed out.

Last week, HCL Technologies announced a cash offer of 650 pence a share for the UK-based SAP consulting company valuing it at £441.1 million, over eight per cent higher than a rival £407 million offer made by Bangalore-based Infosys Technologies.

HCL has inked an ‘inducement fee contract’ with Axon, which entitles it to get one per cent of the bid amount if it failed to acquire the consultancy firm..

Related Stories:
HCL Tech offers £441 m for UK’s Axon, tops Infosys’ bid
Offer price for Axon fair: CEO
Infosys buys UK-based Axon group for £407 m

More Stories on : Software | Mergers & Acquisitions | HCL Technologies Ltd | Overseas Borrowings

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page


Stories in this Section
Super typhoon Jangmi drains out moisture

US meltdown prompts LPOs to step up hiring
Govt to facilitate fast track debt rejig
Top 200 see stable cash flows
Land cost remains small part of capex of large cos
Akruti City (Rs 799.60): SELL
Day Trading Guide
HCL ties up £400-m loan for Axon offer at 6.5%
Safe-haven buying bolsters gold price
‘Genetically engineered humans will be a reality by 2028’
Political actors in the financial theatre
US bailout drama: No Act II
US crisis has not hit contract renewals, says TPI
All eyes on the US bail-out package


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2008, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line