Apax Partners and Providence Equity, among other private equity firms, are interested in buying BT Group’s stake in Tech Mahindra, an Indian IT services company, which is likely to be valued at $830 million, according to the Economic Times. BT holds about a third in Tech Mahindra, and is expecting a 30 percent premium over the current price, which values the deal at more than 37 billion rupees.
(Reuters) – Private equity firms including Apax Partners and Providence Equity have shown interest in buying BT Group’s stake in Tech Mahindra that is likely to be valued at $830 million, the Economic Times said on Tuesday.
BT has restarted discussions to sell its holding in Tech Mahindra following the restatement of financial numbers by the Indian IT services firm’s unit Mahindra Satyam, the newspaper said, citing people with knowledge of the discussions.
The British firm, which holds about a third in Tech Mahindra, is expecting a 30 percent premium over the current market price for the stake sale, valuing the deal at more than 37 billion rupees ($830 million), the paper said.
Officials at BT and Tech Mahindra could not immediately be reached by Reuters for comment.
The Economic Times said that both Providence and Apax had approached the Mahindra Group, the parent of Tech Mahindra, for informal discussions on the stake buy after holding talks with BT.
Goldman Sachs Private Equity has also discussed the Tech Mahindra stake buy with BT, the paper said. For a detailed story, see www.economictimes.com
(Writing by Sumeet Chatterjee; Editing by Ranjit Gangadharan)