HOV Services shares up nearly 6% on US unit merger

Shares of business process outsourcing firm HOV Services surged over 5 per cent after it decided to merge its US unit with BancTec Group LLC.
The BPO firm's stock ended 5.34 per cent higher at Rs 127.15 on the BSE. During the day, it rose 14.33 per cent to Rs 138 -- 52-week high.
On the NSE, it gained 5.65 per cent to end at Rs 127.20.
HOV Services, through its wholly-owned subsidiary HOVS, LLC, holds a minority investment in SourceHOV Holdings Inc, the company had said in a filing to the BSE yesterday.
SourceHOV has entered into an agreement with BancTec Group LLC, a Delaware limited liability company.

BancTec shareholders will receive stock in SourceHOV, which will use a new credit facility to refinance existing indebtedness, redeem certain existing SourceHOV equity holders and provide additional working capital, the filing said.
A meeting of the Board of Directors of the company will be held today to consider a transaction pertaining to investment of wholly owned subsidiary of the firm, it had said in another filing dated yesterday.