Blackstone commits up to $2.8 billion to acquire controlling stake in Mphasis


PTI | Bengaluru | Updated: 26-04-2021 10:34 IST | Created: 26-04-2021 10:34 IST
Blackstone commits up to $2.8 billion to acquire controlling stake in Mphasis
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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 USD 2.0 billion to USD 2.8 billion).

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.PTI RS SS PTI PTI

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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