TeamLease Sells Entire Stake in Joint Venture Company for Rs 10.12 Crores
Teamlease Services Limited has decided to divest its entire equity stake in a joint venture company, selling the 30% holding to Crystal HR and Securities Solutions Private Limited. The transaction was finalized under the terms of a Share Purchase Agreement (SPA) dated January 06, 2025, aiming for portfolio rationalization and capital allocation priorities.The divestment involves TeamLease exiting its partnership with Crystal HR and Securities Solutions Private Limited in the joint venture company. Following the completion of the transaction, the JV company will cease to be a joint venture of Teamlease Services Limited.
The sale proceeds amounted to 10.12 Crores, which were received in cash.
Transaction Details
The acquisition is being conducted by Crystal HR and Security Solutions Private Limited, involving Srividya V as the promoter of the buyer entity. The company's business involves providing various services pertaining to human resource boarding, training, time mapping and attendance, performance management, and payroll services.A detailed breakdown of the divestment and the involved entities is provided below:
| Particulars | Detail |
|---|---|
| Target Entity Name | Crystal HR and Securities Solutions Private Limited |
| Nature of Relationship | Joint Venture |
| Percentage Stake Disposed | Entire equity stake of 30% held by Teamlease Services Limited |
| Consideration Received | 10.12 Crores (Mode: Cash) |
| JV Company Net Worth | 0.95 crore (Contributing 0.7%) |
| Transaction Nature | Related Party Transaction, determined based on arm's length negotiations and an independent valuation report obtained by the company. |
Rationale and Impact
The Board of Directors of Teamlease Services Limited initiated the divestment to align with the company’s strategic objectives concerning portfolio rationalisation and capital allocation priorities.The sale is noted as a related party transaction, with the consideration determined through arm's length negotiations between the parties and factoring in an independent valuation report. The objective for this disposal was clearly stated as portfolio rationalization and capital allocation priorities.
TEAMLEASE Stock Price Movement
Shares of Teamlease Services Limited slipped by 0.50% in post-market trading today, closing at ₹1299.2 after shedding ₹6.50 from its previous close. The equity traded within an intraday range, testing a low of ₹1290 and reaching a high of ₹1317.7.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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