Blackstone Offers $1.1 Billion To Buy 26% Of India’s Mphasis
Blackstone Group will buy Hewlett-Packard Enterprise for 26% of the Indian Mphasis in a $1.1 billion deal, marking the first real estate deal by a US company in the country. The PE giant, which has been mainly involved in property transactions in this country for the past two to three years, announced that it would initially buy HPE. Blackstone said Monday that it would buy HP Enterprise’s stake in Mphasis for $1.1 billion.
The offer is in line with the current market price and represents the acquisition of a 26 percent stake in Mphasis on a fully diluted basis. It has also offered to buy the 26 percent stake of MENSCH at 457.54 rupees per share in order to comply with Indian law.
Depending on the response to the open offer, HPE could receive up to $825 million, while the final cost of the Blackstone transaction could be between $1.1 billion and $2.5 billion, according to sources familiar with the matter. Depending on the reaction of Mphasis’ shareholders and other shareholders in Mensch’s parent company, Hewlett-Packard Enterprise Ltd (HPH), HP E & P, it could also receive up to $675 million in cash, depending on how it reacts to open offers and the eventual cost to Blackstone of the transaction. Depending on how they all and others react in the market.
Information technology, software, and services have been a strong value-added sector over the past two decades, “said Amit Jain, Blackstone India’s chief executive. Information technology and software & services have been the most valuable sector over the past two decades, he said, and have been a stronger sector since its inception in the early 1990s. Information technology, software, and services were the strongest value-added sectors in the first half of the 20th century and in the third quarter of 2016, Amit Jain said. Info Technology & Software & Services is a strong sector in value – creation for the last two decades, said Amit Raghuram Singh, chief executive officer of Blackstones India.
It is a rare opportunity to acquire an asset like Mphasis, which is soon to become one of the most valuable companies in the information technology & software & services sector, “said Amit Raghuram Singh, CEO of Blackstones India. He said Mphasis has a strong track record among Blackstone’s portfolio companies in India’s information, software, and services sectors.
In December 2010, Blackstone announced a $1.1 billion takeover of India’s largest private company, Infosys. In 2010, the company acquired a 60.5 percent stake in the company from Hewlett Packard Enterprise, its largest business in India at the time.