Softbank arm acquires 14% stake in VisualSoft

SAIF II Mauritius Company, a subsidiary of Softbank, has picked up 14 per cent stake (27,96,596 equity shares) in the Hyderabad-based VisualSoft Technologies.

The acquisition at Rs 127 a share is through private arrangement, pursuant to a share purchase agreement signed on August 16 night.

According to V Krishnan, chief financial officer, VisualSoft, SAIF has sought information from the company three to four months back but it did not undertake any due-diligence exercise.

SAIF had acquired the shares from VisualSoft promoters and associates, who hold 37 per cent stake in the company.

"I don't know whether they will go in for an open offer or not," Krishnan said.

The acquisition of 14 per cent stake, however, would not trigger an open offer as per the guidelines of the Securities and Exchange Board of India (Sebi), he added.

Amid speculation about the strategic investment, the stock price of Visualsoft had gone up by over 16.22 per cent to close at Rs 155.10 on Tuesday.

When newspersons contacted Krishnan on Tuesday, he denied any such development. He later clarified on Wednesday that he could not confirm the news till he was sure that the share purchase agreement was signed on Tuesday night.

VisualSoft chairman D V S Raju told Business Standard that there was speculation about the acquisition for the past four months but the company could not confirm anything till the deal was settled. He said that Softbank's acquisition would enhance the company's cross-selling opportunities.

Meanwhile, VisualSoft has denied reports that Srini Raju of iLabs is in talks with the promoters for a possible buyout.

"We don't have, thus far, any intimation from Srini Raju of iLabs regarding acquisition of shares in the company," the company stated.