Baring Private Equity Asia has hiked its holding by 20 per cent in Hexaware Technologies Ltd through an open offer to the shareholders of the company. According to a report in The Times of India, Baring Asia has increased its stake to 71 per cent by spending additional Rs 816 crore. The open offer closed last week and was made for an additional 26 per cent stake.
Under the terms of the deal, Baring PE Asia will now pay promoter Atul Nishar and General Atlantic upper end of the price band of Rs 126-135 aggregating to Rs 1,575–Rs 1,687 crore (approximately $242-260 million based on INR/USD rate of 65). The higher price was to be paid if Baring PE Asia’s stake reaches 50 per cent or above in the transaction.
While Baring bought 41.8 per cent from Nishar and General Atlantic, it picked up another 9-10 per cent from ChrysCapital through market deals. The SPVs through which Baring Asia acquired the stake are HT Global IT Solutions Holdings, Parel Investment Holdings and The Baring Asia Private Equity Fund V, LP.
Hexaware scrip closed at Rs 126.05 on Wednesday, up by 3.7 per cent on the Bombay Stock Exchange in a flat Mumbai market, down by 0.43 per cent.
Last month Baring Private Equity Asia nominated Jimmy Mahtani and Kosmo Kalliarekos as directors on the board of the information technology and business process outsourcing service provider.
The mid-sized IT services company reported a 17.4 per cent growth in consolidated net profit at Rs 98.7 crore for the quarter ended September 30. Hexaware, which follows January-December period as its financial year, reported a 22.4 per cent increase in consolidated revenues during Q3FY13 to Rs 621.1 crore.
(Edited by Joby Puthuparampil Johnson)