| AV Birla group chairman Kumar Mangalam Birla (right) with TransWorks CEO Atul Kunwar in Mumbai on Saturday. (Fotocorp)
Mumbai, June 24: AV Birla group chairman Kumar Mangalam Birla has zoomed in on the non-manufacturing sector. Only days after completing a Rs 4,406-crore transaction to acquire Idea Cellular, TransWorks ' the wholly-owned subsidiary of Aditya Birla Nuvo ' announced it will be acquiring Minacs Worldwide, Canada’s largest business process outsourcing (BPO) provider, for around $125 million.
TransWorks is also a BPO provider with centres in Mumbai, Bangalore and Toronto. The Aditya Birla group plans to amalgamate Minacs with Transworks after the deal is consummated. The move will make the merged entity the third-largest BPO player operating out of India.
TransWorks is now the 15th largest BPO provider in the country.
The Birlas will initially acquire 46.4 per cent of Minacs’ equity from its promoters and subsequently make an open offer to mop up the remaining stake, which is with the public. They have entered into a definitive agreement with Minacs to offer Canadian $5.50 per share in cash for all outstanding shares of the company. If all the shares held by the public are tendered, the acquisition cost will touch $125 million. The combined business will have a revenue base of around $300 million and the deal is expected to be completed by the end of August, subject to necessary approvals.
Interestingly, ReichmannHauer Capital Partners, a Toronto-based private investment firm, which partnered with the Aditya Birla group in evaluating the transaction, intends to invest in the combined entity.
Addressing newspersons here today, Birla said Reichmann might eventually have a 10 per cent stake in the merged company.
“The acquisition demonstrates our commitment to emerge as a leading global BPO services provider and expand our footprint overseas. The integrated expertise of both companies will create and provide more powerful and compelling BPO solutions to clients. The objective will be to deliver outstanding BPO services to global clients from anywhere in the world,” he added.
According to Atul Kunwar, chief executive officer of TransWorks, one of the major positives that Mincas will bring to the table is its expertise in automotive solutions. This vertical is not a part of TransWorks’ core verticals, which include banking & financial services and telecom.
Minacs provides complex analytical tools that enable automobile companies to handle their supply chain requirements apart from assisting them in having a targeted sales approach.