Today, Alfacam Group and Hinduja Group have signed a Memorandum of Understanding. The companies will now start exclusive negotiations in order to reach a full agreement. This agreement will offer Alfacam Group a structural solution securing the future of the Group thanks to its entrance in one of the biggest Indian industrial groups. Once the transaction is completed, Alfacam Group will again be able to concentrate on its main activities and reinforce its presence in the media sector.
Upon careful examination of a number of offers, Alfacam Group, its banks and Hinduja Group India Limited have signed a Memorandum of Understanding (MoU) today.
Alfacam Group, its banks and Hinduja Group India Limited will now enter exclusive negotiations to reach a full agreement on a transaction which will encompass the following elements:
- A new credit facility to the amount of 24 million EURO, which will replace substantially almost all of the current financial debt of Alfacam Group and its affiliate companies;
- A cash equity injection to the amount of 6 million EURO to strengthen Alfacam Group’s capital.
The exact structuring and the technical implementation of the transaction are still to be determined in the aforementioned exclusive negotiations. Alfacam Group will communicate on these matters as soon as a full agreement has been reached. Furthermore, the board of directors of Alfacam Group will see to it that the shareholders are treated equally.
The transaction reflected on this MoU is still subject to receipt of satisfactory financial, tax, legal and commercial due diligence findings. The due diligence process shall be completed before mid-January 2013.
The MoU is valid and operative till 31 January 2013. In order to finalize the deal, the banks have agreed to suspend the repayments during that period.
The envisioned transaction with Hinduja Group will allow Alfacam Group to find a structural solution securing its future with the help of strong international industrial partner in the capital of the Group. Upon completion of the transaction, Alfacam Group will be able to fully concentrate on its strengths, namely its operational power, its commercial drive and its innovative vision.
Hinduja Group can offer support to Alfacam in deepening its business in India, Middle East and in South East Asian regions. Thanks to their activities and knowledge of the media industry, the companies will be able to develop together new technologies to optimize the use of content on new media platforms. Hinduja Group also owns some cable networks and many other media related assets and is active in film production. Hinduja Group will also fulfill its social responsibility to continue with the Flemish Footprint of Alfacam Group.