Long-term investors to acquire majority stake in Mphasis
Blackstone along with Abu Dhabi Investment Authority (ADIA), UC Investments and other long-term investors are acquiring a majority stake in Mphasis for a consideration of up to $2.8 billion, or Rs 21,000 crore.
However, the transaction will trigger a mandatory open offer and the acquirers will have to purchase up to 26 per cent additional shares of the company from its public shareholders.
Blackstone said in a statement that based on the open offer subscription, the blended purchase price will vary in the range of Rs 1,452-1,497 per share, which is at a 12-16 per cent premium to the 12-month average price and 3-6 per cent discount to the six-month average price. The purchase consideration will vary between Rs 15,200 and Rs 21,000 crore ($2-2.8 billion).
However, the open offer is being made at a price of Rs 1,677.16 per share, aggregating to a total consideration of Rs 8,262 crore.
The announcement led to shares of Mphasis closing nearly 1.62 per cent or Rs 27.55 higher at Rs 1,725.25 on the BSE.
At present, Marble II Pte Ltd has a 56.03 per cent stake in Mphasis.
While the new acquirers will buy a little over 55 per cent, they are not part of the seller’s promoter group.
Moreover, the seller and the acquirer belong to separate funds.