NYSE-listed Computer Sciences Corporation (CSC) has launched a mandatory open offer to acquire up to 25 per cent equity stake it doesn’t own in Xchanging Solutions Ltd.
The open offer has been triggered by an indirect acquisition of controlling stake in Xchanging Plc, the British parent of the Indian public-listed IT outsourcing company.
CSC has made an offer to buy 27,850,929 equity shares representing 25 per cent stake from the public shareholders of Xchanging Plc at a price of Rs 37.63 per share in cash, which will value the transaction at around Rs 148 crore ($22 million), if fully subscribed.
Xchanging plc is a London-based provider of technology-enabled business processing, especially in the insurance and financial space with a presence in 42 countries, notably Australia, Germany, and the US. It is known for its Xuber software, a widely used platform in the British insurance market. Its insurance services include processing premiums, policy sales, claims and data analytics.
It had acquired 75 per cent stake in what was earlier known as Cambridge Solutions (formerly Scandent Solutions) for £83 million ($147.3 million or Rs 690.4 crore back then) from a group of its major shareholders. The deal valued Cambridge at $196.4 million then.
It is currently valued at Rs 445 crore ($66 million).
The company was previously controlled by Chanderia family, former Pepsico chairman Chris Sinclair, Satyan Patel, Ramesh Vangal and former McKinsey CEO who is now serving a jail term over securities market insider trading charges, Rajat Gupta.
Some of them continue to be public shareholders of the firm.
Kotak Mahindra Capital is managing the open offer for CSC.