Tech Mahindra (Americas) has declared its intention to divest its 30 percent holding in Avion Networks Inc. for $50,000. The stake will be sold to Kanchana Raman, the promoter of Avion Networks Inc. The anticipated completion date for this sale is set for on or before October 31, 2023.
Tech Mahindra (America) Inc. (TMA), a wholly-owned subsidiary of Tech Mahindra Limited, presently owns 30 percent of the share capital of Avion Networks Inc.
In an exchange filing, Tech Mahindra stated that the buyers are not affiliated with the promoter or promoter group of Tech Mahindra Limited.
The rationale behind divesting its stake in Avion Networks, according to the information technology and software services provider, is that “Since there was no contribution in terms of turnover or net worth in the consolidated turnover or net worth of the company from this entity, it was decided to divest Tech Mahindra’s stake in Avion Networks to optimize the compliance cost and risks.”
In 2015, Tech Mahindra had established a joint venture with Avion Systems, a global telecom technology firm. The joint venture was aimed at providing network design and software engineering services for the deployment and management of mobile networks, as well as the transformation of these networks into cloud-enabled, virtual, and open systems software-driven networks.
This divestment follows Tech Mahindra’s earlier announcement in June of this year when the company revealed its decision to divest its 49 percent stake in SARL Djazatech. The move aligns with Tech Mahindra’s strategic objectives, optimizing its portfolio and focusing on core areas of business.