AGS Transact to sell 90% stake in arm Novus Technologies

The transaction is in line with the corporate’s efforts to scale back debt and enhance money movement. 
| Picture Credit score:
Thitima Uthaiburom

AGS Transact Technologies mentioned it has accepted a non-binding time period sheet for the sale of its 90 per cent fairness stake in its step-down worldwide subsidiary, Novus Technologies Pte. Ltd. The deal is topic to completion of definitive agreements, due diligence, and customary closing circumstances.

“The transaction is in line with the corporate’s efforts to scale back debt and enhance money movement. The signing of the time period sheet marks a major milestone in the transaction course of, with each events concentrating on completion in H1 of 2025,” it mentioned, with out disclosing the identify of purchaser entity.

Combat for survival

That is the primary main stake sale introduced by AGS Transact after defaulting on debt obligations earlier this 12 months. businessline had reported earlier this month that AGS Transact Technologies is in talks to sell a majority stake in its digital cost subsidiary India Transact Providers (ITSL) to Patanjali group, citing sources. AGS can be trying to sell its ‘ATM Change’ enterprise vertical to India 1 Funds, the report mentioned. India 1 is a white label ATM operator, promoted by BANKTECH Group PTY Ltd and BTI Funds Singapore PTE Ltd. The talks between the 2 events, nevertheless, are but to attain a sophisticated stage.

In February, Crisil Rankings downgraded AGS Transact’s ₹900 crore financial institution mortgage facility to ‘D’ or junk, because it did delayed paying its mortgage obligations.

Per interactions with the AGS administration, Crisil Rankings mentioned it believes that the liquidity of the corporate has sharply deteriorated over the previous 2-3 months owing to delay in assortment from receivables as AGS was not ready to meet the service degree agreements (SLAs) with its prospects. Regardless of repeated follow-up with AGS to receive extra particulars, Crisil mentioned it was is but to obtain any particulars on the deficiencies of AGS in assembly its SLAs. Banks, who used ATM companies of AGS, too moved their enterprise contracts to different gamers like Hitachi and CMS.

Printed on April 23, 2025