HOV Services shares jump 20% as its US unit merges with BancTec

Mumbai: Shares of business process outsourcing firm HOV Services Ltd (HOVS) rose nearly 20% on Monday after it informed BSE that Dallas, Texas-based SourceHOV Holdings Inc., in which it holds a minority stake, will merge with BancTec Group Llc.

Headquartered in Chennai, HOVS has operations in several locations in the US.

HOV Services, through its wholly-owned subsidiary HOVS Llc, holds a minority investment in SourceHOV Holdings Inc.

According to the terms of the transaction, BancTec stockholders will receive stock in SourceHOV. SourceHOV will use a new credit facility to refinance existing indebtedness, redeem certain existing SourceHOV equity holders and provide for working capital.

At 12.55pm, HOV Services was trading at ₹ 120.70 on BSE, up 20% from its previous close, while India’s benchmark Sensex rose 0.2% to 26,675.80 points.