Carlyle is the sole bidder to acquire Mphasis from Blackstone
Published On: Thursday, February 25, 2021 | By: Team KnowMyStock
Carlyle Group has emerged as the sole bidder to acquire Blackstone Group-owned Mphasis in what would be the largest buyout in the Indian IT industry, according to some sources. The offer to buy Blackstone’s controlling 56.12% stake is believed to be at Rs 1,450-1,500 a share—lower than Mphasis' closing share price of Rs 1,701.70 on 23rd Feb.2021. The transaction that will lead to a change of control will also trigger an open offer for an additional 26% shareholding of the company. At the higher end of Carlyle’s bid, Blackstone will receive Rs 15,730 crore (more than $2 billion) for its stake in Mphasis—a 12% discount to its current holding valued at Rs 17,838 crore. Depending on the success of the open offer, Carlyle might have to shell out another Rs 7,400 crore based on the 60-day average price of Rs 1,538 a share.
Carlyle is planning to lever up to 6.5 times Mphasis’s FY21 expected Ebitda of Rs 1,821.7 crore to bankroll the transaction.
Blackstone had paid $1 billion at Rs 430 a share to snap up Mphasis from Hewlett Packard Enterprise in 2016. The mandatory open offer for the purchase of the additional 26% shares from the public was at Rs 457.54 apiece.Despite the company's elevated share price, if Carlyle and Blackstone achieve a deal, the former could expect a significant return in the next five years from Mphasis, experts believe.
Tags: Carlyle Mphasis Blackstone
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