The Telegraph
Since 1st March, 1999
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India Inc deal room springs to life
- ICICI weighs BPO stake sale

Mumbai, Nov. 22: ICICI OneSource, the business process outsourcing (BPO) company, is planning to recast its shareholding structure.

The ICICI group, which holds a significant stake in the $123-million company, is expected to offload between 26 and 40 per cent to a couple of strategic investors. The stake is held by ICICI Bank and ICICI Ventures.

An official announcement on this front is expected tomorrow.

It is believed that Temasek Holdings of Singapore, which already is a shareholder in the BPO outfit, could be one of the entities that will be picking up a part of the stake that the ICICI group is offloading.

The ICICI group now holds the largest stake in the company with the rest held by Metavante Corporation, Temasek Holdings and Sequoia Capital India (erstwhile WestBridge Capital Partners) as strategic investors.

Metavante Corporation, the financial technology subsidiary of Marshall & Ilsley Corporation, is one of the top three bank technology and payment processors in the US. Back in April, ICICI OneSource had entered into a strategic partnership with Metavante Corporation under which the latter picked up a 11.5 per cent stake.

Under the terms of the deal, Metavante will be the exclusive distributor in the North American banking and financial services and payments markets of ICICI OneSource’s BPO services.

Sequoia Capital is a venture capital firm. It was formed by the merger of WestBridge Capital Partners into Sequoia Capital.

Talk of the stake sale and a possible IPO from ICICI OneSource has been doing the rounds over the past few months. Speculation mounted after ICICI Bank mentioned on an earlier occasion this year that its control over ICICI OneSource was only temporary.

It is understood that ICICI OneSource is likely to be renamed after the strategic sale. Officials from ICICI OneSource were, however, not available for comment.

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