Blackstone commits $2.8 bn to buy controlling stake in Mphasis
BENGALURU: Blackstone on Monday announced that private equity funds managed by Blackstone have entered into definitive agreements to acquire a majority stake in Bengaluru-headquartered IT services company Mphasis Limited.
A wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA), UC Investments and other long-term investors will co-invest along with Blackstone, a joint statement said.
This transaction will trigger a mandatory open offer for the purchase of up to 26 per cent additional shares of the company from the public shareholders and the acquiring entity has released a public announcement to the stock exchanges, it said. Based on the open offer subscription, the blended purchase price will vary between Rs 1,452 to Rs 1,497 per share (12-16 per cent premium to 12-month average price and 3 -6 per cent discount to six-month
average price) and the purchase consideration will vary between Rs 152 billion to Rs 210 billion (or, approximately $2.0 billion to $2.8 billion).
“This investment enables us to continue creating value for the long term with continuity in the management team and the board, and provide additional resources to further accelerate the company’s growth momentum,” said Amit Dixit, CoHead of Asia Acquisitions and Head of India for Blackstone Private Equity. Specialising in Cloud and digital solutions, Mphasis has deep domain expertise in the banking, financial services and insurance (BFSI) sector and serves 35 of the top 50 US BFSI firms.
A different fund managed by Blackstone had acquired a controlling stake in Mphasis from Hewlett Packard Enterprise in September 2016. The sale is expected to complete in the coming months, subject to customary closing conditions and regulatory approvals, the statement added.
This investment enables us to continue creating value for the long term with continuity in the management team and the board
—Amit Dixit,
Co-Head of Asia Acquisitions and Head of India for Blackstone Private Equity