Mphasis share rises 6.5% as Blackstone offers to buy additional stake for Rs 8,262 crore

Share of Mphasis rose over 6% today after private equity firm Blackstone committed up to $2.8 billion to acquire a controlling stake in the company. Mphasis share touched an intraday high of Rs 1,805, 6.32% higher on BSE.

The stock has risen 5.02% in the last 2 days. Mphasis is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

The stock has gained 156% in one year and risen 12% since the beginning of this year.

Market cap of the firm rose to Rs 33,288 crore.

Later, the stock ended 1.62% higher at Rs 1,725 on BSE.

Blackstone said funds managed by it have entered into definitive agreements to acquire a majority stake in Mphasis, and the transaction will trigger an open offer for the acquisition of up to 26 percent stake.

A wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA), UC Investments (Office of the Chief Investment Officer of The Regents, University of California) and others will co-invest along with Blackstone, a statement said.

The sale is likely to complete in the coming months, subject to customary closing conditions and regulatory approvals.

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Based on the open offer subscription, the blended purchase price will vary between Rs 1,452 to Rs 1,497 per share (12-16 per cent premium to 12-month average price and 3-6 per cent discount to 6-month average price) and the purchase consideration will vary between Rs 15,200 crore to Rs 21,000 crore (approximately USD 2-2.8 billion), the statement said.

Mphasis in a regulatory filing said that "BCP Topco IX Pte Ltd along with Blackstone Capital Partners Asia NQ LP and Blackstone Capital Partners (CYM) VIII AIV - F LP... have announced an open offer for the acquisition of up to 49,263,203 fully paid-up equity shares... from the public shareholders of Mphasis Ltd, representing 26 per cent of the Expanded Voting Share Capital, at a price of Rs 1,677.16 per equity share."

This aggregates to a total consideration of Rs 8,262.23 crore, as per the filing.