LTIMindtree To Have 51% Share In New JV With Saudi's Aramco Subsidiary (image@LTIMindtreeOFCL)
LTIMindtree and Saudi Arabia’s Aramco subsidiary company, Global Digital are joining hands to an ambitious venture offering IT services. The project is said to be for MENA (Middle East and North Africa) region, initial investment of the project is believed to be $12.3 million. LTIMindtree, the tech consulting company will hold 51 percentage of the share capital of the new joint venture (JV).
The sixth largest IT services will make the initial investment in one or more tranches, as said by the company in a regulatory filing. The filing said, “we hereby inform you that LTIMindtree Limited (“LTIMindtree”) has on March 5, 2024, executed a Shareholder’s Agreement (“SHA”) with Global Digital Integrated Solutions Company (“Global Digital”), a wholly owned subsidiary of Saudi Arabian Oil Company (“Saudi Aramco”), for setting up a Joint Venture in the Kingdom of Saudi Arabia”.
The statement also read that the scope of the joint venture is to provide and market information technology services to accelerate the digital transformation and new next generation technology adoption in government and private sector enterprises in the Kingdom of Saudi Arabia and in the MENA region. Initially, the authorised capital of the new company shall be in Saudi Riyals, 500,000 (around 1.10 crore), as said in the statement.
The MENA region comprises of Saudi Arabia, Bahrain, Kuwait, Oman, Qatar, United Arab Emirates, Iraq, Jordan, Lebanon, Egypt, Libya, Tunisia, Algeria, and Morocco.
A chairman and vice-chairman will preside meetings of managers. The meetings will consist of five members. While LTIMindtree will have the right to appoint, remove or replace three board managers, Global Digital will have right to appoint, remove and replace two of the members.
The project provides an attractive financial investment and opportunity for the acceleration of the digital transformation of Saudi Arabia, in line with its 2023 Vision, added the statement.
