Sasken Communication Technologies shares advanced as much as 19.8 per cent on Monday after it informed stock exchanges that the company has reached a settlement with Spreadtrum
Sasken Communication Technologies shares hit upper circuit on Monday after it informed stock exchanges that the company has reached a settlement with Spreadtrum Communications, Inc. and Beijing UniSpreadtrum Technology (Spreadtrum) in connection with the unauthorised use of Sasken’s Protocol Stack IP, by the said companies. This settlement brings to an end the ongoing arbitration and terminates all ongoing obligations of the parties under the relevant agreements.
Shares of Sasken Communication closed 20 per cent up at Rs 379.40.
The formal settlement document is expected to be finalised in the next few days. Spreadtrum will pay Sasken $45 million as damages / compensation before March 31, 2016 towards this settlement.
The promoters holding in the company stood at 40.52 per cent while institutions and non-institutions held 17.99 per cent and 41.49 per cent, respectively.
Sasken Communication Technologies offers a range of services in areas of research & development consultancy, wireless software products and software services, and works with network OEMs, semiconductor vendors, terminal device OEMs and operators across the world.