Some investors acclaimed United States private equity firm Bain Capital Partners’ plan to purchase a 30 percent investment in technology outsourcing services provider Genpact Ltd. that deliver their shares to their highest in approximately two years. Co-founded by United States presidential candidate Mitt Romney, Bain Capital will pay about $14.76 each share or $1 billion to purchase 68 million Genpact shares from Oak hill Capital Partners and General Atlantic.
The agreement will lessen the combined investment of Genpact’s two major stakeholders to almost 10 percent from 40 percent. William Blair analysts Bhavan Suri noted that they believe the loom of a potential secondary offering is caused by the end of life of Oak Hill’s fund had actualized the stock price. He added that the acquisitions of 30 percent by bain with a two and a half year constraint on selling any stocks should lessen much of that twist.
Genpact has a market value of almost $3.82 billion and in 1997 it was set up by General Electric Co. in the north Indian city or Gurgaon to support back-office services to its group firms, in 2005 it was widened as a separate firm. According to Chief Executive N.V. Tiger Tyagarajan said that since seven years ago the two firms Oak Hill capital and General Atlantic were investors. It supported them to innovate from a confined unit to a transformed business today that perform technology services and business process management all over the world.
He added that since General Atlantic and Oak Hill arrived, the firm has improved five times in size. Genpact will pay a special dividend which cost $2.24 per share to all stakeholders that includes General Atlantic and Oak Hill before the stake sale. Earlier this month, Reuters reported that Bain Capital was in advanced meeting with the Government of Singapore Investment Corp to produce a combined bid for a 40 percent stake for $1.5 to $2 billion in Genpact.
According to Thomson Reuters, Genpact also forecasts full-year profit of $1.86 billion to $1.9 billion, this shows up largely over analyst expectations of $1.89 billion. Tyagarajan said that in spite of the softness in optional spend that is there in several parts they have done well in the first half of the year. In the second quarter, the firm gained an adjusted profit of 32 cents per share on its revenue of $467.6 million. On Tuesday, smaller opponent ExlService Holdings Inc established a better than expected quarter for its data analytics services and acknowledged its full year profit forecast.
REFERENCES:
http://profit.ndtv.com/news/market/article-investors-cheer-bain-capitals-genpact-stake-buy-shares-rise-308763
http://www.google.com.ph/url?sa=t&rct=j&q=investors%20cheer%20bain%20capital%27s%20genpact%20stake%20buy%2C%20shares%20rise&source=web&cd=2&cad=rja&ved=0CCwQFjAB&url=http%3A%2F%2Farticle.wn.com%2Fview%2F2012%2F08%2F02%2FInvestors_cheer_Bain_Capitals_Genpact_stake_buy_shares_rise%2F&ei=kUJhUL3qO8iKiALNpYGoBQ&usg=AFQjCNEd11G3S9mWaYDr392fxoWj6XGisA
http://www.silobreaker.com/investors-cheer-bain-capitals-genpact-stake-buy-shares-rise-5_2265879091217432915
http://www.indiaeveryday.in/finance/news-investors-cheer-bain-capitals-genpact-stake-buy-shares-1027-4215124.htm
