Infibeam and CCAvenue have announced merger to create an integrated fintech and ecommerce platform.
As part of the proposed transaction, post-merger, the shareholders of the CC Avenue will be issued shares of the Infibeam based on the valuation report and the following agreed share exchange ratio.
Infibeam has agreed to issue 260 fully paid up Equity Shares of face value Rs. 10/- (Rupees Ten Only) each for every 100 fully paid up Shares of face value Rs. 10/- (Rupees Ten Only) of Avenues. CCAvenue currently has 5.2 Mn shares and Infibeam has agreed to pay Rs 3,846/share.
Infibeam had earlier announced buying 7.50% Equity stake for Rs. 150 Crores and further investment of Rs. 60 Crores for acquiring 3.85% stake of CCAvenue already held by NSI Infinium Global Pvt. Limited, the Wholly Owned Subsidiary (”NSI”) of Infibeam Incorporation Limited. The total investment made by Infibeam into CCAvenue was Rs. 210 Crores representing 11.35% stake.
The merger of CC Avenue into Infibeam will be highly cash and profit accretive business which should result in to a high growth opportunity under combined strength using Infibeam Web Services. The merged company will provide about 85% of India’s e-Commerce websites with its Platform and Payments web services. It will further create operating synergies for domestic and international markets which will result in significant growth for Infibeam.
The Board also approved stock split from Face Value Rs. 10 to Face Value of Rs. 1 per share.
Further the Board approved the Stock Appreciation Rights Scheme (SAR) for the benefit of the employees of the company under the SEBI Regulation, 2014. The Board also approved to setup employee welfare trust to hold SAR shares under Infibeam Stock Appreciation Rights Scheme, 2017.
The Market Capitalisation of Infibeam has steadily grown to Rs. 6,100 crores registering a growth of 160% in a period of 15 months since listing in April 2016.