Chennai, April 28: DSQ Software Ltd got the shareholders nod for investmentof Rs 250 crore in acquisition of overseas companies at the extraordinarygeneral meeting (EGM) held here on Friday. According to the managingdirector, Dinesh Dalmia the company is negotiating to acquire three unlistedcompanies in the US through stock swaps. DSQ Software also got the nod ofshareholders to issue 2.5 million equity shares on private/preferentialbasis as consideration for acquisition of such companies.Valuations are being done by KPMG and other consultants. Dalmia said that atpresent the valuation of Rs 2200 per share has been done as per Sebiguidelines, but the final price consideration can be fixed only at the timeof concluding the deals as market volatility has to be factored in. In aninformal chat with reporters later, Dalmia was clear that if DSQ Softwarevaluations are reckoned at lesser levels, he would expect that the valuationof the companies that are being bought also would go down and hence DSQ'squantum of shares swapped will be the same. The acquisition deals areexpected to be completed within three months.
Dalmia said the companies acquired will not be ones that will help invertical growth of DSQ, but only those that will add to its bottomline.These companies are in the $50 million plus turnover range but Dalmiadeclined to divulge further details at this stage. It was also revealed thatall employees of companies acquired by DSQ Software will be eligible for itsemployee stock options scheme.
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