AXISCADES Technologies Divests Aerospace Engineering Services in Major Strategic Restructuring with Akkodis Group

AXISCADES Technologies Divests Aerospace Engineering Services in Major Strategic Restructuring with Akkodis Group​

AXISCADES Technologies Limited, a technology and solutions provider in the Aerospace and Defence domains, has approved a strategic transaction involving the divestment of its Engineering Services business in the Aerospace industry. The business transfer involves several units—including CSTI and various global branches—to implement a joint venture and subsequent sale to Akkodis Group AG and its subsidiary, Akkodis India Private Limited.

The transaction is part of AXISCADES' broader strategy to realign and re-deploy capital resources toward identified growth priorities in technology- and capability-led acquisitions and manufacturing infrastructure.

Transaction Structure and Implementation​

The implementation of the proposed deal involves multiple stages: the incorporation/acquisition of Transferee Subsidiaries, internal business transfers, fund infusions, and the final divestment of AXISCADES' stake in these newly formed entities to Akkodis Group AG.

AXISCADES has approved the following core elements:
1. The internal carve-out and transfer of the "Transferring Business" from the Company, its branches (German Branch and France Branch), and subsidiaries (CSTI, ATL Germany, ATL UK, ATL Canada, and ATL US).
2. The establishment of Transferee Subsidiaries in India, Switzerland, France, Canada, the United Kingdom, United States of America, and Germany.
3. A phase-wise divestment plan for AXISCADES' entire shareholding in these material subsidiaries to Akkodis Group.

Key Transferee Subsidiaries​

To facilitate the transaction, several new entities are being incorporated or acquired. These companies will be engaged in Aerospace Engineering services upon their establishment.

Internal Business Transfers and Financing​

Upon the incorporation of these Transferee Subsidiaries, a series of business transfers will take place. The "Transferring Business" will be transferred to the respective new entities:

• The Company's Transferring Business was transferred to New India Co. on a slump sale basis.
• CSTI's Transferring Business was also transferred to New India Co. on a slump sale basis.
• Business transfers of ATL Germany, ATL France Branch, ATL UK, ATL Canada, and ATL USA were directed toward their corresponding new step-down subsidiaries (New Germany Co., New France Co., etc.).

The transaction involves phased fund infusions from Akkodis entities. The India Fund Infusion will be executed by Akkodis India Private Limited into New India Co. to discharge 51% of the consideration payable to ATL for its business transfer, while the Company and Akkodis Group AG will infuse funds into Overseas HoldCo for the Overseas Fund Infusion.

Consideration and Divestment Timeline​

The aggregate consideration payable at the closing of the Business Transfers is USD 152.35 million, which was determined based on a valuation report from M/s SSPA & Co., Chartered Accountants. This consideration will be settled through cash and shares as stipulated in the Transaction Documents.

The transaction structure dictates that the divestment of AXISCADES' stake in both New India Co. and Overseas HoldCo. to Akkodis entities is scheduled for a two-year anniversary period following the closure of their respective fund infusions.

Key timelines include:

• Implementation Period: The Business Transfers and subsequent fund infusions are expected to be completed within 5–6 months from the execution date of the Master Framework Agreements (MFAs).
• Divestment Timeline: The sale of the balance 49% stake by AXISCADES in both New India Co. and Overseas HoldCo. is planned for post 24 months of the relevant fund infusion completion.

The total aggregate consideration for the Proposed Transaction, as detailed across Tranche 1 and Tranche 2 payments, stands at USD 206.30 million. This amount is structured such that an initial cash payment of USD 77.70 million will be received during the India Fund Infusion and Overseas Fund Infusion phases, with a balance payment of USD 76.02 million scheduled after two years.

AXISCADES Stock Price Movement​

Today, AxisCades Technologies Limited saw its shares rally significantly in post-market trading, closing at ₹1967.40, which represents a 5.00% gain. The stock recorded a volume of 126,563 shares as it settled higher after the market close.