PE firms Carlyle, Advent to bid for BT's stake in Tech Mahindra: report
14 Oct 2011
Private equity firms, Carlyle Group and Advent International are in the race to buy British Telecom's 23.2-per cent stake in IT services firm Tech Mahindra, The Time of India today reported, citing two unidentified sources.
Carlyle, the world's largest PE firm, may partner with Advent and split the stake, it reported and added that the deal is valued at a little over $500 million.
A joint stake buy would also mitigate the risk of writing a large cheque on single investment in the prevailing climate of economic uncertainties, said the paper.
BT and Mahindra and Mahindra (M&M) set up a joint venture that became Tech Mahindra in 1986 and since then, the Indian-listed business has grown to gross annual revenues in excess of $1 billion.
The London-based £21-billion telecom giant, has been looking to divest its stake in Tech Mahindra since 2008, but had to put its plans on hold following the stock market collapse due to the global recession.
It did sell 5.5 per cent of its holding or 6.9 million shares to M&M in December last year for £63 million.
