Baring Private Equity Asia will acquire a majority stake in Hexaware Technologies for a total consideration of up to Rs 2,745 crore.
As per the deal, approved by the IT company’s board on Friday, the promoters —Atul Nishar (with 27.7 per cent stake) and GA Global Investments (14.1 per cent) — have entered into an agreement to sell their 41.8 per cent stake to the private equity firm for a maximum of Rs 1,687 crore.
Additionally, the PE fund will make an open offer to the IT company’s public shareholders to pick up a further 26 per cent stake at Rs 135 per share.
If the open offer is fully subscribed, Baring will have to shell out Rs 1,058 crore.
Baring Asia will pay the promoters Rs 126 or Rs 135 per share, totalling Rs 1,575–1,687 crore, with the higher price of Rs 135 per share being payable on Baring Asia reaching 50 per cent or above aggregate shareholding in Hexaware in the transaction, the company said in a press statement.
The Mumbai-based company’s promoters, led by Chairman Atul Nishar and GA Global Investments, will sell about 125 million shares to the Singapore-based private equity firm. The deal , subject to regulatory approvals, is expected to close by the end of this year.
Public co
Hexaware will remain a publicly-listed company, with Atul Nishar as non-executive chairman and P.R. Chandrasekar continuing as chief executive officer, said Nishar, in a statement.
The total potential investment of more than $465 million will be the largest investment made by Baring Asia in India, Jean Salata, Chief Executive and Founding Partner of Baring Private Equity Asia, said. Morgan Stanley was the primary financial advisor and Credit Suisse co-advisor to the promoter entities.
Hexaware had reported revenues of $364 million for the financial year ended December 31, 2012. The company has more than 200 active customers and employs about 8,700 personnel and has eight global development centres.
DENIAL
On Tuesday, in an e-mail to Business Line , the company had denied any such deal was on. “We wish to clarify that all the statements in your e-mail are purely baseless speculations which do not carry any authentic or substantial matter,” it had said. “These statements are all ‘obloquy’ (state of disgrace) of the company and can cause a damaging loss for Hexaware and its promoters in the market and its clientele database. The content in your email is completely false, baseless and highly defamatory,” it had said.
Ahead of the development, Hexaware scrip ended up 1.6 per cent at Rs 120.75 on the BSE.
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