Blackstone Group funds will acquire a majority stake in IT firm Mphasis Ltd, triggering an offer for the acquisition of up to 26% in the company, at an investment of INR 8,262 crore. Office of the Chief Investment Officer of The Regents, University of California (UC Investments), a subsidiary of the Abu Dhabi Investment Authority (ADIA), among others will also co-invest along with Blackstone.
Based on the open offer subscription, the purchase price will be approximately INR 1,452 per share and the purchase consideration will vary anywhere between IINR 15,200 – INR 21,000 crore /$2-2.8 billion. A separate fund managed by Blackstone back in 2016, had acquired a controlling stake in Mphasis from Hewlett Packard Enterprise.
The expanded voting share capital implies total voting equity share capital of the target company expected as of the 10th working day from the closure of the open offer, on a fully diluted basis. This includes 2,368,949 employee stock options already vested as of today, which is exercisable into an equal number of equity shares. There will be an added 59,500 stock options of employees that will be vested between the date of announcing the price publicly and August 31, 2021. The sale is expected to finalize and close in the upcoming months, subject to approvals and closing conditions.