Mphasis ends 3% down on Blackstone acquisition

Mphasis stock today closed nearly 3 per cent after private equity firm Blackstone said it will buy out HP Enterprise's stake in the firm for up to Rs 7,071 crore (USD 1.1 billion).
Shares of the firm closed at Rs 454.45 on BSE, down 2.77 per cent over the previous close. Intra-day, it touched a low of Rs 450.
On NSE, the stock settled at Rs 454.90, a slump of 2.87 per cent over its previous close. Total 7,73,713 shares of the company were traded on the exchange.
Hewlett Packard Enterprise (HPE) currently owns 60.5 per cent of Mphasis.
"Blackstone will pay a purchase price of Rs 430 per share to HPE... As per the Takeover Code in India, this transaction will trigger a mandatory open offer for a purchase of additional 26 per cent shares of the company," Blackstone said in a statement.

Based on the open offer subscription, the purchase price consideration will vary between Rs 5,466 crore and Rs 7,071 crore (USD 825 million - USD 1.1 billion), it added.

Mphasis' last 12 months revenue as of December 31, was about USD 904 million and net profit of USD 104 million.
It has deep vertical expertise in banking, financial services and insurance (BFSI) sector and strong portfolio focus on New Generation Services including digital solutions.
Mphasis' marquee customers include six top global banks, 11 out of 15 top mortgage lenders, and three top global insurance companies. It has roughly 24,000 employees across 16 countries.

The sale is expected to complete in the coming months, subject to customary closing conditions and approvals.