Allsec Tech, Quess Corp climb up to 12% as boards approve merger

NEW DELHI: Shares of Allsec Technologies and Quess Corp climbed up to 12 per cent in Thursday’s trade after the board of two companies decided to merge Allsec Technologies into Quess Corp in an all-stock deal.

The move is aimed at simplifying the corporate structure, achieving sales and operational efficiencies and leveraging a larger integrated digital platform of Allsec and Conneqt.

Following the development, shares of Allsec Technologies jumped 11.93 per cent to hit a high of Rs 482.45 on BSE. The stock is still off its 52-week high of Rs 748.60 hit earlier this January. Quess Corp also jumped 4.32 per cent to hit a high of Rs 642.90.

As per the deal, minority shareholders of Allsec, other than Quess, will be issued equity shares of Quess in the ratio of 0.74:1. This means that public shareholders of Allsec will receive 74 shares of Quess for every 100 shares held in Allsec. The deal will be tax neutral for Quess and Allsec Technologies, the companies said.

The merger is subject to the approval of respective shareholders and creditors of Quess and Allsec, stock exchanges, Sebi, the National Company Law Tribunal and other regulatory authorities as may be required. Till the scheme becomes effective, Quess and Allsec will continue to function independently.

“The combined entity (post-merger) will mean a larger organization with expanded offerings available to take to the market. The combination would allow to attract and retain talent given additional opportunities opening up in the combined entity. Further, it will reduce statutory compliance requirements,” Quess said in a BSE filing.