Accel Frontline has breached the upper circuit at Rs.35.50, the moment it opened for trading today morning. Its 52-week high is at Rs.38.

The stock is frozen on the upper circuit after it announced today morning that CAC Corporation of Japan and the promoters of Accel Have come together to form a Joint Venture with CAC, which is taking a 51% stake in the company.

CAC C will acquire a minimum of 51% through purchase of equity shares from the promoters and purchase of equity shares from mandatory open offer for up to 26% of the Company’s equity capital at a price of Rs 45 per equity share.

The Company will be run as a Joint Venture between CAC and the AFL who will continue to be significant owners of the Company. As a part of the growth plans for future Accel, apart from expansion of equity capital base, both CAC and the promoters will provide long-term soft loans to the company for enhancing its working capital needs.

The transaction is subject to statutory approvals from regulatory authorities in Japan and India.

CAC Corporation was established in 1966 as Japan’s first independent software development company. CAC specializes in providing services to the banking and manufacturing sectors. Accel Frontline founded in1991 as Accel Automation, provides IT services to small, medium and large enterprises. It has subsidiaries in Japan.