On Monday, shares of the leading Cloud Communications Platform Service provider rose 7.7 percent to a 52-week high of Rs 1,759.90 after the company announced that its promoters had entered into a share purchase agreement to sell their entire 57.56 percent stake.
Route Mobile Ltd shares were trading at Rs 1,487.50 at 3:23 p.m., down 8.53 percent from the previous close price.
As per exchange filings, Proximus Group, a Belgian telecommunications company, has entered into a definitive agreement to purchase 57.56 percent of Route Mobile through Proximus Opal. The transaction is priced at Rs 5,922.42 crores in cash for a price per share of Rs 1,626.40. Proximus Group aims to become a global leader in CPaaS and digital identification by purchasing a stake in this company.
As part of the agreement, some of Route Mobile’s founding shareholders will reinvest in Proximus Opal, a subsidiary of the Proximus Group and the holding company of Telesign, Proximus’ US-based affiliate.
This strategic acquisition of Route Mobile delivers around EUR 900 million in yearly revenue for Route Mobile and Telesign combined.
Post this transaction, Proximus Opal will issue an open offer to buy additional of Route mobile of 1.64 crore shares, or 26 percent of Route Mobile’s improved voting share capital, from its public shareholders. Subject to statutory approvals, the Open Offer price is also Rs 1,626.4 per share, for a total consideration of Rs 2,675 crore.
Year to date, the stock has gained 22.29 percent, rising from Rs 1,216.45 to the present price. The stock has risen 23.96 percent in the last six years to the current price.
Route Mobile is a provider of Cloud Communication Platforms to businesses, over-the-top (OTT) players, and mobile network operators (MNO) and the company’s portfolio includes smart solutions in Messaging, Voice, Email, and SMS Filtering, Analytics & Monetization.
Revenue increased by 60 percent year on year to Rs 535 crore in FY 22-23 from previous year. Net profit climbed by 222 percent within the same time period to Rs 87 crore.
As per shareholding pattern for the quarter ending June 2023, promoters own 58.32 percent of the company, while Foreign institutional investors own 20.3 percent and domestic institutional investors own 8.15 percent.
Written by Omkar Chitnis
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