Boston, MA 05\/28\/2014 (wallstreetpr) \u2013 \u00a0 India Globalization Capital, Inc. (NYSEMKT:IGC)<\/b> has confirmed it has initiated a letter of intent demonstrating its clear intention to acquire Hong Kong based, Golden gate. Subject to execution of the acquisition agreement, satisfaction of due diligence and approval by IGC board, the transaction should close in the current quarter. Speedy completion of the transaction is as a result of the transaction not requiring any vote from IGC shareholders.<\/p>\n
India Globalization Acquiring 51% Stake<\/b><\/p>\n
Golden Gate comes into the transaction with full year revenue of $10 million. Terms of the transaction entail India Globalization Capital, Inc. (NYSEMKT:IGC) acquiring 51% of the Hong Kong based company in an all-stock transaction of 1,209,765 shares. IGC shares will be paid in a three year period out of four tranches. Full closure of the transaction will see 205,660 shares exchanging hands with remaining shares being paid in subsequent meetings.<\/p>\n
India Globalization\u2019s CEO has consequently welcomed Golden Gate into the merger expected to result in new pro-business over wide markets. The merger is thus expected to spearhead accelerated growth in both revenue front and earnings, as well as strengthening current business portfolio.<\/p>\n
India Globalization Rated as a Sell<\/b><\/p>\n
India Globalization Capital, Inc. (NYSEMKT:IGC) is acquiring Golden Gate as it continues to commands a \u201cSell\u201d rating with a D- score from TheStreet research Equity firm. Unimpressive growth in net income accompanied with weak operating cash flow and marginal growth in earnings per share are the reasons behind the \u201cSell\u201d ratings. India Globalization\u2019s net income has underperformed compared to the S&P 500 index consequently depreciating from $0.31 million to-$0.31 million.<\/p>\n
The company\u2019s net operating cash flow has, on the other hand, dwindled by highs of 130.14% from a similar quarter a year ago to lows of $0.45 million. India Globalization Capital, Inc. (NYSEMKT:IGC)\u2019s stock has also tumbled by 29.20% on a year over basis\u00a0 with earnings per share consequently going down by 140%\u00a0 compared to a year ago levels. TheStreet research firm feels that the sharp decline in the company\u2019s share value could act as a major deterrent on investors wishing to invest in the company in the future.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 05\/28\/2014 (wallstreetpr) \u2013 \u00a0 India Globalization Capital, Inc. (NYSEMKT:IGC) has confirmed it has initiated a letter of intent demonstrating its clear intention to […]<\/p>\n","protected":false},"author":2,"featured_media":23837,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236],"tags":[6940,6939],"stock_ticker":[],"class_list":["post-23836","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-india-globalization-capital-inc-nysemktigc","tag-nysemktigc","entry"],"acf":[],"yoast_head":"\n