Mumbai: At its meeting on Wednesday, the board of directors of NxtDigital Ltd (NDL) has accorded an in-principle approval for merger of Hinduja Leyland Finance Ltd (HLFL), a non-banking finance company into NDL, subject to all statutory or regulatory approvals and approval of the shareholders.

The proposed acquisition will result in the merged entity having assets aggregating above Rs 29,000 crore and the shareholders receiving shares pursuant to the share swap valuation. The company will appoint independent valuers to carry out the valuation exercise and submit the report including share exchange ratio.

A subsidiary of Ashok Leyland, HLFL is one of India’s leading finance NBFCs with an AUM of over Rs 29,000 crore and a pan-India presence in 1,550 locations across 23 states and two union territories. Through a vast network of branches, the company finances a wide range of commercial and personal vehicles, from medium and heavy commercial vehicles, light commercial vehicles and small commercial vehicles to cars, multi-utility vehicles, three wheelers, and two wheelers, as well as various kinds of used vehicles.

Post the decision to transfer the digital, media and communications business undertaking to Hinduja Global Solutions Ltd, (which is subject to necessary regulatory and shareholder approvals), NDL has been evaluating various proposals in line with its objective of pursuing high growth oriented business opportunities that could bring in incremental value. In line with this commitment to create value for its shareholders, this merger will enable the shareholders of NDL to participate in and be a part of the aggressive growth plans of HLFL.