LTIMindtree Ltd on Wednesday, March 6, said that it will set up a joint venture with Global Digital, an arm of Saudi Aramco, for IT services in the MENA region with an initial investment of $12.3 million.
In a filing to the stock exchanges, LTIMindtree said that it will hold 51% of the share capital in the Joint Venture company and the remaining 49% will be owned by Global Digital.
The JV entity aims to promote and implement cutting-edge technology across government and private sector companies in the Kingdom of Saudi Arabia (KSA) and the wider Middle East and North Africa (MENA) region, LTIMindtree informed the bourses.
The MENA region includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, UAE, Iraq, Jordan, Lebanon, Egypt, Libya, Tunisia, Algeria, and Morocco.
The planned joint venture aims to drive digital transformation in Saudi Arabia, fostering the growth of the digital economy by bridging gaps, sharing IT expertise, and cultivating a robust ecosystem for IT and Digital Transformation services in the country.
Moreover, the joint venture offers an attractive financial opportunity and the potential to expedite Saudi Arabia's digital transformation through collaborative innovation and the creation of shared intellectual property, aligning with Saudi Arabia's Vision 2030.
"With Aramco Digital, we will bring our global capabilities and expertise and leverage new technologies to deliver digital transformation suitable for giga projects, the government sector, high growth industries, energy, manufacturing, and the financial services sector," Sudhir Chaturvedi, President and Executive Board Member of LTIMindtree, said.
Click Here for Sudhir Chaturvedi, President & Executive Board Member, LTIMindtree's interview on CNBC-TV18
The joint venture's board will have five members, with LTIMindtree appointing/removing three and Global Digital appointing/removing two.
Nabil Al Nuaim, Aramco Senior Vice President of Digital and Information Technology and a board member of Aramco Digital said that the joint venture aims to foster the localisation of the IT services vital sector, create valuable jobs, and pave the way for a brighter future in the Kingdom.
At 11:10 AM, shares of LTIMindtree were trading 0.8% lower, after scaling a fresh 52-week high of ₹5159.95 earlier in the session.
(Edited by : Asmita Pant)
First Published: Mar 6, 2024 11:16 AM IST
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