Digital open offer to start Jan 19

MUMBAI: Hewlett Packard(HP) will start the book-building process for buying back the 49.4 per cent public stake in its Bangalore-based subsidiary Digital GlobalSoft on January 19.






The dates for buying back shares under the book building process would be from January 19 to January 23. The buyback price is likely to be fixed at Rs 750 per share.





However, post offer, the Digital scrip would get de-listed from domestic stock exchanges.





Digital GlobalSoft, in June, signed a definitive agreement with HP to combine operations with HP Services India Software Organization (HP ISO). Under the agreement, HP was to increase its equity stake in Digital GlobalSoft to 73.2 per cent from 50.6 per cent.





The market had expressed unhappiness over the valuation method used to determine the price to combine the operations of Digital GlobalSoft with HP.





US-based HP, which is a leading maker of computer printers, holds a little more than 50 per cent shares of Digital Globasoft, after it took over Compaq Computer Holding in May 2002.

Source: IRIS