Baring Private Equity Asia to acquire 30% stake in NIIT Technologies from NIIT and other promoter entities
NIIT Technologies has said that funds affiliated with Baring Private Equity Asia have signed definitive agreements to buy 30 per cent of promoters holding for Rs 2,627 crore.
Baring will initially purchase NIIT's 18.85 million shares at a price of Rs 1,394 per share. It will make an open offer to public shareholders of NIIT Technologies to purchase up to 26 per cent additional shareholding at a price of Rs 1,394 per share in accordance with the Securities and Exchange Board of India (SEBI) regulations.
The aggregate consideration for purchase of shares from promoter entities and the open offer is estimated to be Rs 4,890 crore based on ownership of 56 per cent stake. The transaction is conditional upon customary conditions, including receipt of required regulatory approvals, including anti-trust and competition clearances from Competition Commission of India.
Rajendra Pawar, Chairman, NIIT Technologies, said: "The long-standing relationships with marquee customers, many spanning over two decades, are a consequence of a sharp focus on identified verticals including, travel, banking and insurance and distinctive capabilities developed. The involvement of Baring Private Equity Asia will provide further impetus to the management team led by CEO Sudhir Singh to take the company to the next level of growth."
Vijay Thadani, Vice Chairman and Managing Director, NIIT Limited, said: "Baring Private Equity Asia's association will support the existing management team in capturing the opportunities in an increasingly digital world."
In addition, NIIT Technologies announced the signing of definitive agreements to acquire 53 per cent stake initially in Whishworks IT Consulting with the remaining equity to be acquired over the next two years through pay-outslinked to financial performance.
It also signed a definitive agreement for the sale of its entire 88.99 per cent stake in Esri India Technologies to the other existing equity shareholder Environmental Systems Research Institute Inc.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)