Mumbai: The board of directors of Nxtdigital approved the proposal for a merger with Hinduja Leyland Finance (HLFL) and their respective shareholders, subject to regulatory approval.

The proposed scheme for the merger of HLFL will come into effect after the on-going scheme of transfer of the "digital media & communications business undertaking" into Hinduja Global Solutions (HGSL) is completed.

The board also approved the share exchange ratio for the proposed merger. The ratio was approved based on the comprehensive valuation exercise carried out and recommended by two independent valuers, M/s KPMG Valuation Services and M/s SSPA & Co., Chartered Accountants.

As per the valuation, HLFL shareholders will get 23 fully paid equity shares of a face value of Rs 10 per share in NDL for every ten fully paid equity shares of a face value of Rs 10 each held by them in HLFL.

The proposed merger, once completed, will fuel the expansion plans of both companies. The proposed scheme is subject to all shareholder and regulatory approvals and the National Company Law Tribunal (NCLT).