The Aditya Birla Group is exiting theIT sector by selling its Canadian subsidiary, Aditya Birla Minacs Worldwide (ABMW), an IT-ITeS player, for $ 260 million (around Rs 1,625 crore).
Accordingly, ABNL IT & ITeS Ltd., a wholly-owned subsidiary of Aditya Birla Nuvo Ltd. (ABNL), has entered into an agreement to divest subsidiary ABMW to a consortium of financial investors led by Capital Square Partners (CSP) and CX Partners (CXP), a statement said.
Macquarie Capital acted as financial adviser to the private equity consortium while Shearman & Sterling is its legal advisor. The transaction is likely to be completed in two to three months, subject to requisite customary and regulatory approvals.
Aditya Birla Nuvo is a $4.75 billion conglomerate with a presence in diverse sectors such as financial services, fashion & lifestyle, telecom and IT-ITeS. It entered the ITeS sector in 2003 by buying TransWorks, a $12 million company. TransWorks acquired Minacs in 2006, and, over the years, turned the company around.
Minacs reported sales of Rs. 2,466 crore ($450 million) and a net profit of Rs. 125 crore ($23 million) in 2012-13. The company today partners global corporations through its 35 centres across 10 countries and three continents.
“Given the multiple growth opportunities and ensuing capital requirements at ABNL, the company decided to divest Minacs to a strategic financial investor, with extensive domain experience, who can ensure that Minacs continues to progress forward on its strategic roadmap,” the ABNL statement said.
Listed on the Bombay Stock Exchange, the shares of Aditya Birla Nuvogained 3.75 per cent to close trading at Rs. 1,105.
