Baring Asia to acquire 42% stake in Hexaware Technologies

Baring Asia to acquire 42% stake in Hexaware TechnologiesPrivate equity firm Baring Private Equity Asia will acquire 41.8 per cent stake in software firm Hexaware Technologies for Rs 1,687 crore.

In one of India's biggest IT acquisition deals, Baring will acquire the stake in parts from promoters led by Hexaware Chairman Atul Nishar and General Atlantic Global Investments.

While Atul Nishar-led promoter entities will offload 27.7 per cent stake, General Atlantic will sell 14.1 per cent stake in the software firm at a price of Rs126-135 a share. In other words, the promoter entities will sell 12.5 crore shares for up to Rs 1,687 crore.

According to capital market regulator Sebi's rules, Baring will launch an open offer for an acquiring additional 26 per cent stake at in the company at a price of Rs 135 a share, which aggregates at Rs 1,058 crore.

Mr. Nishar said that the deal would not pass the software firm's total clear control to the private equity firm.

Speaking on the topic, He said, "Hexaware will remain a public company, and the management team led by P R Chandrasekar will continue."

The proposed deal values Hexaware at around Rs 4,200 crore ($700 million), which represents a premium of 15-18 per cent to Friday's stock price of Rs 120.75 a share on BSE.