BENGALURU: Touted as the biggest private equity deal in India, US-based private equity major Blackstone on Monday signed a definitive agreement to buy out Hewlett Packard Enterprise’s 60.5 per cent stake in Bengaluru-based mid-sized IT services exporter Mphasis for about Rs 7,071 crore ($1.1 billion).
Outbidding two other contenders — Apollo Global Management and Tech Mahindra, Blackstone will pay a purchase price of Rs 430 per share to HPE, thus adding Mphasis to its portfolio of over 80 companies, earning a combined revenue of over $86 billion.
Blackstone India’s managing director Amit Dixit said in a teleconference with media: “As per the Takeover Code in India, this transaction will trigger a mandatory open offer for a purchase of an additional 26 per cent shares of the company.”
Based on the open offer, the purchase price consideration will vary between Rs 5,466 crore and Rs 7,071 crore ($825 million - $1.1 billion).
The deal is expected to be completed in the coming months, subject to customary closing conditions and approvals.
Post deal, there will be no rationalisation of manpower and Mphasis will continue with the same top management.