Baring sells 34.73% MphasiS stake to EDS

The friendly offer by Electronic Data Systems Corporation (EDS) for a controlling stake in MphasiS has taken a major step towards fruition with Baring India Investment selling its entire 34.73% holding in MphasiS to TH Holdings/EDS Corporation. The sale is subject to the successful completion of the open offer.

Earlier, Jerry Rao, chairman & managing director of MphasiS, had sold 18.75 lakh shares of MphasiS to TH Holdings, earning about Rs 38 crore in the process.

TH Holdings along with EDS made an open offer to acquire 52% stake in MphasiS at Rs 204.50 a share in a bid amounting to Rs 1,672 crore ($380 million). The offer will be contingent upon EDS acquiring 83 million shares, representing approximately 52% of current shares outstanding.  EDS expects the transaction to be completed by early third quarter of current fiscal.

Earlier, the MphasiS board had welcomed the offer saying, it "will fully support whatever action the shareholders take with respect to this offer." The MphasiS board acknowledged that partnership with a leader like EDS will enable MphasiS to broaden its offering to its customers and also provide enhanced prospects to its employees.