EDS to buy majority stake in MphasiS

By : |January 2, 2003 0



PLANO,Texas: Business and Technology solutions provider EDS is expected to announce on Tuesday, a conditional open offer to acquire a majority stake in Bangalore-based MphasiS BFL Ltd, an applications and business process outsourcing (BPO) services company, for Rs 204.5 (approximately US$4.58) per share in cash, pursuant to Indian securities regulations.

This price represents an approximate 30 per cent premium to the 26-week average price of MphasiS.

The offer will be contingent upon EDS acquiring 83 million shares, representing approximately 52 per cent of current shares outstanding. If at least 83 million shares are not tendered in the offer, EDS will not accept any shares tendered.

At current exchange rates, total purchase price for the 83 million shares is approximately $380 million. EDS expects this transaction to be completed by early third quarter.

“This offer is complementary to our overall strategy to enhance EDS’ presence and capabilities in India,” said Mike Jordan, EDS chairman and chief executive officer.

MphasiS currently has more than 12,000 employees, including about 11,000 in India. MphasiS serves clients in multiple industries, including financial services, transportation, technology and healthcare.

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