UK incumbent BT has invited potential buyers to bid on a 10% stake in its Indian IT services and outsourcing business Tech Mahindra, reports Dow Jones citing local TV channel CNBC-TV18. BT owns some 24% of Tech Mahindra, which began as a JV with local…
UK incumbent BT has invited potential buyers to bid on a 10% stake in its Indian IT services and outsourcing business Tech Mahindra, reports Dow Jones citing local TV channel CNBC-TV18. BT owns some 24% of Tech Mahindra, which began as a JV with local conglomerate Mahindra & Mahindra.
The seller is reportedly looking to sell the stake at a premium of 10-15%. The company has a market cap of some Rs91bn (US$2.15bn).
Dow Jones cited its own source who suggested that BT could be targeting private equity rather than a strategic, owing to the small stake size, but declined to say whether a formal process was underway.
In December 2010, BT sold a 5.5% stake in the company to M&M for £63m (US$102m) but retained a 24% stake. M&M currently has a 43% stake.
BT declined comment on what it described as speculation.