Sanjiv Goenka Of RPG Group May Acquire Firstsource Solutions
Sanjiv Goenka, the younger son of Ram Prasad Goenka, of RPG Group is said to be the leading buyer to acquire Firstsource Solutions Limited.
The completion of the deal will provide exit opportunities to existing investors comprising of ICICI Bank (18.10%), Aranda Investments (18.82%) and Metavante Investments (18.17%) among others.
The company will consider the deal proposal in a board meeting tomorrow and JP Morgan is the banker for the deal. Read here for an earlier assessment of the situation.
After attempts to revive from the debt mishap faced by the company post aggressive acquisitions in past and FCCB repayment hurdles, it has been considering a number of ways to get back on track.
In 2010, ICICI tried to sell its stake to PE firm KKR but the deal did not go through. The same year, the company sold Pipal Research – a KPO firm to Crisil for $12.75 Mn.
Last year there were talks of the company selling its American healthcare subsidiary, MedAssist, acquired in 2007 for $330 Mn.
Currently the company has been buying back FCCBs whenever possible and pending FCCBs amount to $237 Mn, for which it was planning ECBs in the range of $75-80 Mn.
It has a cash pile of R750 Cr as on June and it thus faces a shortfall of around $85 Mn.
The Mumbai headquartered RPG Group is a conglomerate founded in 1979 having over 20 companies in the areas covering infrastructure, technology and speciality.
Sanjiv Goenka’s elder brother Harsh Goenka already has a presence in the IT space through Zensar Technologies and the acquisition of FSL will provide Sanjiv’s group to have a presence in BPO verticals like telecom, media, healthcare and banking.
In 2010, Zensar bought U.S firm PSI Holdings Group and its subsidiaries, Akibia and Aqulla Tech, which are active in the infrastructure management and IT services in data centre management and network security solutions in the North American and European regions.
Acquisition activity in the space include Sutherland Global Services ready to acquire Apollo Health Street - a healthcare BPO arm of Apollo Hospitals for R875 Cr, Hutchison Global Services (telecom BPO) being up for sale, TA Associate acquiring controlling stake in Omega Healthcare (healthcare BPO) for R530 Cr and Infosys BPO out in the market for acquisitions.
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