Essar Group to acquire 59.13-per cent stake in AGC Networks

The $15-billion diversified Essar Group said yesterday that it would acquire US-based enterprise communications systems, software and services company, Avaya's entire 59.13-per cent stake in BSE-  / NSE-listed AGC Networks for Rs206.19 crore.

The Rs245-per share acquisition is aimed at boosting Essar's business process outsourcing (BPO) business, Aegis.

The move comes after Aegis Ltd, a provider of BPO services and part of the Essar Group agreed this month to acquire the US-based customer service centre in Killeen, Texas from Sallie Mae, the country's largest student lender. (See: Aegis buys Sallie Mae's back office in Texas)

''Essar in a short span has become a key player in the SI space and would benefit immensely from the depth and width of expertise AGC Networks has," said Aparup Sengupta, MD, and Global CEO, Aegis Ltd. "We have a definitive plan to grow this business as we aim for bigger chunks of customer spends.''

Mumbai-based Essar Group, a large Indian business corporation with interests in sectors like steel, energy, power, communications, shipping ports and logistics, and construction said that the acquisition would be done through Essar Services Holdings Limited (ESHL).

Essar Capital Finance Private Limited (ECF) along with ESHL, will make a mandatory open offer for an additional 20-per cent stake as required by the SEBI Takeover Regulation.

ECF will make a mandatory offer on Monday, 31 May.