Essar exits BPO biz

Tribune News Service

Advertisement

New Delhi, November 27

AGC Holdings Limited (AGC) Mauritius, a wholly owned portfolio company of Essar Global Fund Limited (Essar Global), has concluded the sale of its 100% stake in ESM Holdings Limited, Mauritius, which is the holding company of Aegis, a major global outsourcing company, to Capital Square Partners (CSP) for $300 million (approximately Rs 2,000 crore). Net proceeds from this sale will be used to retire Essar’s debt.

The closure of this transaction is in line with Essar’s intent to reduce leverage that is complemented by an asset monetisation programme. The proceeds from the sale of Aegis and Essar Oil have enabled Essar to retire almost Rs 75,000 crore of debt.

The transaction also marks Essar Global’s complete exit from the BPO business after creating significant value through organic growth and strategic acquisitions that helped diversify customer offerings.

Since the acquisition of Aegis Communication by Essar Group in 2003, Aegis has grown over 10-fold to become a significant player in the outsourcing industry.

Through a judicious mix of organic growth and strategic acquisitions, the company has expanded its global footprint across nine countries, namely India, South Africa, Australia, Saudi Arabia, the UK, Argentina, Sri Lanka, Peru and Malaysia. Aegis has concluded over 19 acquisitions with a 100% success ratio, in contrast with the 30% success rate of M&A prevalent in the BPO industry, the company said.