HT Media, the publisher of the Hindustan Times newspaper among other media brands, is picking 100 zero per cent fully convertible debentures of Comp-U-Learn.
Although the pricing of the shares on conversion has not been disclosed, at the current market price, it could pick as much as five per cent stake based on current equity base, as per VCCircle estimates.
The promoters, who held only 15 per cent in Comp-U-Learn as of March 31, are also subscribing to fresh shares of the company. So the final equity stake being picked by HT Media could be a tad lower than 5 per cent.
Comp-U-Learn, which is in the process of rechristening itself as CTIL, is engaged in providing IT services and solutions in the areas of education and training and e-commerce besides software and web development solutions. It also provides business process outsourcing solutions.
Last month, the company had announced its acquisition of ECG Technology LLC, a Delaware-based firm engaged in engineering, technical and design consulting. In February this year, Comp-U-Learn acquired Divya Knowledge Process Management Ltd, an educational services company having a tie up with Bharathidasan University (Tiruchirapalli, Tamil Nadu). The company had made five acquisitions in the last three years.
The company is also looking to raise as much as $100 million to fund expansion plans and has mandated i-banking firm Greenwish Equity Group for the purpose. HT Media is one of the handful of media groups besides Bennett Coleman & Co Ltd (Times of India Group) and DB Corp, who strike ad-for-equity deals by swapping ad space in their media vehicles with equity stake in companies.
(Edited by Prem Udayabhanu and Sanghamitra Mandal)