AGC Holdings Ltd, a portfolio company of Essar Global, has closed its previously announced sale of its stake in ESM Holdings Limited, Mauritius, the holding company of Aegis, to Capital Square Partners. The price of the transaction was $300 million. Axis Capital served as financial adviser to Essar on the deal with Platinum Partners and Sidley Austin providing legal advice. And, Shearman & Sterling and Shardul Amarchand Mangaldas acted as legal advisors to CSP. Aegis is a global outsourcing company.
MAURITIUS and SINGAPORE, November 27, 2017 /PRNewswire/ –AGC Holdings Limited (AGC) Mauritius, a wholly owned portfolio company of Essar Global Fund Limited (Essar Global), has concluded the sale of 100% of its stake in ESM Holdings Limited, Mauritius, which is the holding company of Aegis, a major global outsourcing company, to Capital Square Partners (CSP) for US $ 300 Million (Approximately Rs.2,000 crore). Net proceeds from this sale, which was announced on 3 April 2017, will be used to retire Essar’s debt.
The closure of this transaction is in line with Essar’s intent to reduce leverage that is complemented by an asset monetisation programme. The proceeds from the sale of Aegis and Essar Oil have enabled Essar to retire almost Rs 75,000 crore of debt.
The transaction also marks Essar Global’s complete exit from the BPO business after creating significant value through organic growth and strategic acquisitions that helped diversify customer offerings.
Since the acquisition of Aegis Communication by Essar Group in 2003, Aegis has grown over tenfold to become a significant player in the outsourcing industry. Through a judicious mix of organic growth and strategic acquisitions, the company has expanded its global footprint across 9 countries, namely India, South Africa, Australia, Saudi Arabia, UK, Argentina, Sri Lanka, Peru and Malaysia. Aegis has concluded over 19 acquisitions with a 100% success ratio, in contrast with the 30% success rate of M&As prevalent in the BPO industry. In 2014, AGC had successfully sold its stake in Aegis USA Inc (comprising Aegis’ operations in the USA, the Philippines and Costa Rica) to Teleperformance.
Essar’s advisors in the transaction include Axis Capital as financial advisor, and Platinum Partners and Sidley Austin as legal advisors. Shearman & Sterling and Shardul Amarchand Mangaldas acted as legal advisors to CSP.
Mr Uday Gujadhur, Director – AGC Holding, said: “The closure of this transaction is yet another validation of Essar Global Fund’s commitment to reduce its leverage by monetising the non-core businesses in its portfolio. I congratulate CSP for investing in a high quality asset, like Aegis, in the BPO space and adding to its breadth of expertise.”
Mr Sanjay Chakrabarty and Mr Mukesh Sharda, Managing Partners of CSP, jointly said: “With this acquisition now complete, we are keenly looking forward to working with the Aegis management team to grow its global footprint and enhance its capabilities and excellence in service to its customers.”
Mr Sandip Sen, Global CEO, Aegis, said, “I am thankful to the Essar management for incubating the BPO business and nurturing it through timely and strategic acquisitions. Essar’s support and guidance helped us grow and reach a stage where we could dream bigger and strive higher. I am very excited to have CSP join us as our new partners in Aegis’ growth journey.”
Essar Global Fund operates a number of world-class assets diversified across the core sectors of Energy, Metals & Mining, Infrastructure and Services. The aggregated revenues of the Fund’s portfolio companies total US$15 billion. Fund’s portfolio companies employ over 10,000 people across four continents.
Aegis is a leading outsourcing business solutions partner to global corporations in the telecom, technology, media, Banking Financial Services and Insurance, travel and logistics, Retail and E-commerce and public sectors. 40,000+ Aegis experts across 47 centers worldwide deliver customer lifecycle management, technology services, back office services and social media analytics to power superior business results for clients. Visit http://www.aegisglobal.com to learn more about solutions for global enterprises and their customers.
About Capital Square Partners
Capital Square Partners is a private equity fund manager based in Singapore, and regulated by the Monetary Authority of Singapore (MAS). It primarily invests in buyouts and control investments across South East Asia and India, with a focus on TMT, Healthcare, Business Services and Consumer sectors. It has made a number of investments in the Technology Services and BPO sectors, including its investment to acquire MINACS in early 2014 which was subsequently acquired by Concentrix in late 2016. Additional information on CSP can be found at http://www.capitalsquarepartners.com.