Blackstone to invest $2.8 bn in Mphasis

New Delhi, April 26

Blackstone on Monday said funds managed by the private equity firm will acquire a majority stake in IT firm Mphasis Ltd, triggering an open offer for acquisition of up to 26% stake for about Rs 8,262 crore.

A wholly-owned subsidiary of the Abu Dhabi Investment Authority, UC Investments and others will co-invest along with Blackstone, a statement said.

Open offer for 26% stake

• Based on the open offer subscription, the blended purchase price will vary between Rs1,452 and Rs1,497 per share (12-16% premium to 12-month average price and 3-6% discount to 6-month average price)
• The purchase consideration will vary between Rs15,200 crore and Rs21,000 crore (approximately $2-2.8 billion)

A different fund managed by Blackstone had acquired a controlling stake in Mphasis from Hewlett Packard Enterprise in September 2016, it added. At the end of March 2021 quarter, Marble II Pte Ltd, a fund managed by Blackstone, held 56.03% stake in Mphasis.

Meanwhile, Mphasis in a regulatory filing said Marble II Pte Ltd will sell up to 1,04,799,577 equity shares as part of the share purchase agreement signed on Monday. This represents 55.31% of the expanded voting share capital, it added.

The expanded voting share capital refers to the total voting equity share capital of the target company on a fully diluted basis expected as of the 10th working day from the closure of the tendering period for the open offer. — PTI