The latest share sale of investors in outsourcing major Genpact will see its original promoter General Electric's stake falling to half of its current 18.3%. Private equity firms General Atlantic LLC and Oak Hill Capital Partners, along with Wachovia, are also in on their holdings in the New York Stock Exchange outsourcing major.
The deal could see the shareholders raking in around $417 million, according to the current trading price of $14.91 of Genpact. This amount can go up to $485 million if the option for allotment of additional shares is exercised.
The issue consists of 28 million shares, of which 20 million are being sold by GE Capital (Mauritius) Holdings, which will see its shareholding fall from 18.3% to 9.14%. The remaining 7 million shares will be sold by Genpact Investment Co, an investment vehicle owned by
General Atlantic and Oak Hill, whose stake is expected to fall to 45.74% post this transaction. The remaining shares will be sold by Wells Fargo & Co.
Genpact recently acquired Symphony Marketing Solutions, Inc, a provider of analytics and data management services with expertise in retail, pharmaceutical and consumer packaged goods industries. Genpact had net revenues of $1.12 billion in 2009, of which around 40% came
from GE.
The present offering would be the second major liquidity event for the shareholders of Genpact. India's largest outsourcer was listed on NYSE in 2007, where it raised $494.1 million through an issue of 35.2 million shares. Of this issue, half consisted of a share sale by GE, General Atlantic and Oak Hill.
At the current market capitalisation of $3.25 billion, both General Atlantic and Oak Hill's remaining stake would be valued at $1.48 billion. The two PE firms bought a 60% stake Genpact in 2005 for a reported $800 million.
