Hexaware up 5% on stake sale plans to Baring Equity
Baring will buy out promoters led by Atul Nishar and GA Global Investment Ltd's 41.8 percent stake at Rs 126 or Rs 135 per share for an aggregate Rs 1,575 crore to Rs 1,687 crore. It will buy Hexaware founders' 27.7 per cent stake and 14.1 per cent from private equity firm General Atlantic.
August 26, 2013 / 16:20 IST
Moneycontrol Bureau
Hexaware Technologies shares gained more than 5 percent in early trade Monday after Baring Private Equity Asia agreed to buy a controlling stake in the Indian outsourcing services provider for about Rs 1,687 crore.Baring will buy out promoters led by Atul Nishar and GA Global Investment Ltd's 41.8 percent stake at Rs 126 or Rs 135 per share for an aggregate Rs 1,575 crore to Rs 1,687 crore. It will buy Hexaware founders' 27.7 per cent stake and 14.1 per cent from private equity firm General Atlantic.Post the sale, Baring will make a mandatory tender offer to minority shareholders of Hexaware for up to 26 percent of the company at Rs 135 a share."Affiliates of Baring Private Equity Asia have signed definitive agreements to purchase approximately 125 million Hexaware shares, from promoter entities, led by Atul Nishar and GA Global Investments, an affiliate of General Atlantic in aggregate representing 41.8 per cent shareholding in Hexaware," Hexaware said in a statement.Atul Nishar will continue as non-executive chairman of Hexaware and P R Chandrasekar will continue as CEO of Hexaware, it added.Meanwhile, in a BSE filing, Hexaware said its board of directors at a meeting held on August 23, 2013 "have been notified and have acknowledged that Elder Infosystem Pvt Ltd and Elder Venture LLP (both of whom were disclosed as "promoters" in the disclosures filed by the Company with the stock exchanges) and GA Global Investments Limited have entered into a share purchase agreements with HT Global IT Solutions Holdings Ltd."HT Global IT Solutions Holdings is a company under the laws of Mauritius and is an affiliate of Baring Private Equity Asia, the filing added.Commenting on the agreement, Hexaware Chairman Atul Nishar said: "Hexaware will remain a public company and the management team led by P R Chandrasekar will continue ensuring continuity of relationships with all stakeholders particularly our customers, employees and public shareholders."The deal is subject to customary conditions, including receipt of required regulatory approval, including anti-trust and competition clearances from the Competition Commission of India and is expected to close by the end of this year, the statement said.Nomura has a buy rating on the stock with a target price of Rs 130. "Communication from Baring on what they bring to table will be keenly watched, especially if Baring can bring any revenue synergies for Hexaware on the business front from among its portfolio companies," Nomura report said.At 09:53 hours IST, the stock rallied 6.21 percent to Rs 128.25 amid high volumes on the Bombay Stock Exchange.(With inputs from PTI) Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
