Financial Daily from THE HINDU group of publications
Tuesday, Aug 17, 2004
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HDFC to sell 50 pc in Intelenet to Barclays Bank
Mumbai , Aug. 16
HDFC today announced that it would be selling 50 per cent stake in its BPO venture, Intelenet Global Services, to Barclays Bank Plc for Rs 164 crore, subject to regulatory approvals.
It was less than a month ago on July 21 that HDFC had bought TCS's 50 per cent stake in Intelenet for Rs 161 crore, making Intelenet a 100 per cent subsidiary.
Barclays is a leading UK-based financial services conglomerate operating in over 60 countries.
Mr Deepak Parekh, Chairman, HDFC, said: "We were among the early entrants in this industry and we intend to be a long-term player in the BPO space. Barclays was looking for an opportunity to acquire an established business platform with some immediate capacity and access to experienced staff. This opportunity arose and they decided it was an attractive alternative to expanding their existing outsourced operations."
He added: "They also wanted to leverage such a company to realise their offshoring objectives. We were seeking a partner with similar objectives. We believe that Barclays would be the right partner in terms of the culture, strategic intent and approach to business. Barclays will bring in significant expertise in the area of international financial services, which, we believe will augment Intelenet's delivery capability in this domain and will fuel growth."
At the time of TCS's sale of 50 per cent stake in Intelenet to HDFC, the buyer and seller had stated: "With the continued growth in Intelenet's business, it became necessary to consolidate ownership of the company."
The statement added that it was mutually decided that the ownership of Intelenet would transfer entirely to HDFC.
HDFC and TCS had set up Intelenet as a 50:50 joint venture in 2000. The company offers a range of BPO solutions and services and has over 4,300 employees and 19 clients.
During the last financial year, it reported revenues of Rs 117 crore, an operating profit of Rs 26.6 crore and net profit of Rs 10.8 crore (before adjustment for deferred tax).
Its financials are expected to grow significantly in the next financial year, said a HDFC release.
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