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NIIT shares rise over 18% after US unit sells biz

NIIT shares rise over 18% after US unit sells biz
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First Published: Mon, Oct 17 2011. 01 03 PM IST

NIIT’s CEO Vijay Thadani. (File photo)
NIIT’s CEO Vijay Thadani. (File photo)
Updated: Mon, Oct 17 2011. 01 03 PM IST
Mumbai: Shares in software trainer NIIT rose more than 18% in early trades on Monday, after the firm said it sold its United States (US) unit’s entire stake in Element K Corp, a step-down subsidiary, to Ireland-based SkillSoft for $110 million.
NIIT’s CEO Vijay Thadani. (File photo)
NIIT had also signed a long-term strategic and licensing agreement with SkillSoft to become a product and content developer for the Irish firm, the Indian firm said in a statement on Saturday.
“This partnership will enable NIIT to rapidly expand its managed service business,” Vijay Thadani, chief executive officer (CEO), NIIT, said.
“We have been arguing that the stock is attractively valued - this transaction will result in value unlocking - we expect significant upside to the NIIT stock in the near term,” Citi said in a research note.
The transaction will also make NIIT a debt-free company as it had net debt of around $60 million at the end of the June- quarter, the note said.
At 9:56 am, NIIT shares were up 14.17% at Rs 49.95 in a firm Mumbai market.
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First Published: Mon, Oct 17 2011. 01 03 PM IST